At TrendSpider, we are constantly working on adding new, useful features to our platform as well as updating and improving the ones we currently have. In this blog post, we take a look at the addition of the popular “Volume by Price” Indicator. Enjoy these new features and improvements!
Volume by Price Indicator
Volume by Price is an indicator that shows the amount of volume for a particular price range based on closing prices. Volume by Price bars are horizontal and shown on the right side of the chart to correspond with these price ranges. By combining volume and closing prices, this indicator can be used to identify high-volume price ranges to mark support or resistance zones.
What are POC and VWAP?
- POC or Point Of Control – The price level with the highest volume traded.
- VWAP or Volume Weighted Average Price – The volume-weighted average price for all the candles to the right of VbP Starts Here line.
Setting Up Volume by Price
To add this Indicator to your chart select indicators, then search “Volume by Price”. Once added you will see an array of options like the number of columns shown, display of point of control, and display of “VWAP” or the volume-based average price for the highlighted period. For this example, we are going to set it to 15 columns and keep the POC and Vwap lines visible.
Volume by Price Starts Here Line
Zoom out and you will notice a black vertical line labeled “Volume by Price Line Starts Here”. This line is scrollable left and right and will adjust the period that your VBP indicator is including in its calculation.