VPT is based on a running cumulative volume that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon the investment's upward or downward movements.
Only the shape of the resulting indicator is used, not the actual level of the total.
VPT is similar to on-balance volume (OBV),[2] but where OBV takes volume just according to whether the close was higher or lower, VPT includes how much higher or lower it was.
VPT is interpreted in similar ways to OBV.
If VPT fails to go past its previous rally high then this is a negative divergence, suggesting a weak move.