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VPA (Volume Price Analysis)

Volume Price Analysis glossary · Volume Price Analysis

Definition

The methodology of analysing the relationship between volume and price to determine market direction and the validity of price moves.

VPA (Volume Price Analysis) in plain English

Every trade leaves two clues: the price (what people paid) and the volume (how many shares actually changed hands). VPA is simply reading those two clues together to judge whether a price move is real or a bluff — a big rally on heavy volume means lots of real buyers are behind it, while the same rally on thin volume is suspicious and likely to fade. Think of a crowd cheering: a roar from a packed stadium means something; the same 'roar' from three people means the excitement is fake. Anna Coulling's whole approach is built on asking, every single bar, 'does the volume back up what the price is telling me?'

Also called: Volume Price Analysis

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