OPEN-SOURCE SCRIPT
VPT Ribbon on Price Chart (Normalized)
📊 Volume Price Trend (VPT) Ribbon – Explained
🔷 What it Is:
A visual ribbon of EMAs (Exponential Moving Averages) applied to the Volume Price Trend (VPT) line.
It helps you see volume-backed momentum trends — not just price.
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📈 What VPT Does:
VPT = cumulative sum of (volume × percentage price change)
It rises sharply when price increases on high volume = strong buying
It falls when price decreases on high volume = strong selling
Flat movement = low conviction
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🧠 What the Ribbon Shows:
Each line in the ribbon is an EMA of the VPT line, colored like this:
Color Meaning
Green shades Strong uptrend supported by volume
Lime Early signs of weakening or pause
Orange Neutral to bearish transition zone
Red shades Strong volume-backed downtrend
When the lines spread and point upward → strong bullish volume momentum.
When the ribbon compresses or flips down → weakening or bearish trend.
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✅ How to Use:
Observation Interpretation
All EMAs rising + green tones Bullish volume trend
Ribbon narrowing + lime/orange emerging Caution – possible reversal or slowdown
Red tones + EMAs turning downward Bearish volume momentum
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Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.