Volume Price Confirmation Indicator (VPCI) for ThinkorSwim

BenTen

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VPCI or known as Volume Price Confirmation Indicator was developed by Buff Dormeier. It plots the relationship between the price trend and the volume.

hQFtFM4.png


You may find this excerpt interesting (full article):

> Fundamentally, the VPCI reveals the proportional imbalances between price trends and volume-adjusted price trends. An uptrend with increasing volume is a market characterized by greed supported by the fuel needed to grow. An uptrend without volume is complacent and reveals greed deprived of the fuel needed to sustain itself. Investors without the influx of other investors ( volume ) will eventually lose interest and the uptrend should eventually breakdown. A falling price trend reveals a market driven by fear. A falling price trend without volume reveals apathy, fear without increasing energy. Unlike greed, fear is self-sustaining, and may endure for long time periods without increasing fuel or energy. Adding energy to fear can be likened to adding fuel to a fire and is generally bearish until the VPCI reverses. In such cases, weak-minded investor's, overcome by fear, are becoming irrationally fearful until the selling climax reaches a state of maximum homogeneity. At this point, ownership held by weak investor’s has been purged, producing a type of heat death capitulation. These occurrences may be visualized by the VPCI falling below the lower standard deviation of a Bollinger Band of the VPCI, and then rising above the lower band, and forming a 'V' bottom.

thinkScript Code

Per author: the shortTerm/longTerm lengths need tuning for your instrument. The default 5/20 is not optimal
Rich (BB code):
#//
#// @author LazyBear
#//
#// If you use this code in its orignal/modified form, do drop me a note.
#//
#study("Volume Price Confirmation Indicator [LazyBear]", shorttitle="VPCI_LB" )
# Converted to TOS by Rigel 2018.
#
declare lower;
input shortTerm = 5;
input longTerm = 20;
def agg=aggregationPeriod.MIN;
input src = close;
input BBlength = 20; #, title="BB Length"
input mult = 2.5;
def vpc = vwap(period=longTerm*agg) - Average(src, longTerm);
def vpr = vwap(period=shortTerm*agg) / Average(src, shortTerm);
def vm = Average(volume, shortTerm) / Average(volume, longTerm);

plot vpci = vpc * vpr * vm;
vpci.setDefaultColor(color.green);
plot zero=0;
zero.setdefaultColor(color.cyan);

input lengthMA=8 ; #, "VPCI MA Length"
plot MA = Average(vpci, lengthMA);
MA.setdefaultColor(color.pink);

def bb_s = vpci;
plot basis = Average(bb_s, BBlength);
def dev = (mult * StDev(bb_s, BBlength));
plot upper = (basis + dev);
plot lower = (basis - dev);
basis.setdefaultColor(color.white);
basis.setPaintingStrategy(PaintingStrategy.line);
basis.setStyle(curve.SHORT_DASH);

Shareable Link

https://tos.mx/DbMSRi

This indicator was converted to ThinkorSwim by rigel from the TradingView version developed by LazyBear.
 
Last edited by a moderator:

netarchitech

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Doesn't display for me. The code looks fine. No gripes from the compiler. Puzzling...

 
Last edited:

BenTen

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@netarchitech You have to enable pre-market if you haven't aldready

 
Last edited:

MerryDay

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@BenTen Is there a reason why VPCI indicator doesn't work on a daily chart even after removing the agg?
Without seeing your modified script "after removing the agg" it is not possible to say where you went astray.
It should be pointed out that "removing the agg" does not work with this indicator as the whole premise is the use of the two aggregation VWAP for confirmation.
 
Last edited:

TapthatAsk

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@
VPCI or known as Volume Price Confirmation Indicator was developed by Buff Dormeier. It plots the relationship between the price trend and the volume.

hQFtFM4.png


You may find this excerpt interesting (full article):



thinkScript Code

Per author: the shortTerm/longTerm lengths need tuning for your instrument. The default 5/20 is not optimal
Rich (BB code):
#//
#// @author LazyBear
#//
#// If you use this code in its orignal/modified form, do drop me a note.
#//
#study("Volume Price Confirmation Indicator [LazyBear]", shorttitle="VPCI_LB" )
# Converted to TOS by Rigel 2018.
#
declare lower;
input shortTerm = 5;
input longTerm = 20;
def agg=aggregationPeriod.MIN;
input src = close;
input BBlength = 20; #, title="BB Length"
input mult = 2.5;
def vpc = vwap(period=longTerm*agg) - Average(src, longTerm);
def vpr = vwap(period=shortTerm*agg) / Average(src, shortTerm);
def vm = Average(volume, shortTerm) / Average(volume, longTerm);

plot vpci = vpc * vpr * vm;
vpci.setDefaultColor(color.green);
plot zero=0;
zero.setdefaultColor(color.cyan);

input lengthMA=8 ; #, "VPCI MA Length"
plot MA = Average(vpci, lengthMA);
MA.setdefaultColor(color.pink);

def bb_s = vpci;
plot basis = Average(bb_s, BBlength);
def dev = (mult * StDev(bb_s, BBlength));
plot upper = (basis + dev);
plot lower = (basis - dev);
basis.setdefaultColor(color.white);
basis.setPaintingStrategy(PaintingStrategy.line);
basis.setStyle(curve.SHORT_DASH);

Shareable Link

https://tos.mx/DbMSRi

This indicator was converted to ThinkorSwim by rigel from the TradingView version developed by LazyBear.
Are the 5/20 lengths good for short term or long term? This looks like a good lil tool to look at. @MerryDay @BenTen
 

MerryDay

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@

Are the 5/20 lengths good for short term or long term? This looks like a good lil tool to look at. @MerryDay @BenTen
I am not sure.
Recommend you put it on your chart. Nothing beats personal experience ;) The only way you will know what works best for you is to play with the settings and see how the indicator line up w/ your strategy and with your other indicators. To determine if this indicator brings value, analyze it over different timeframes, across history and with multiple instruments.
 

TapthatAsk

Member
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I am not sure.
Recommend you put it on your chart. Nothing beats personal experience ;) The only way you will know what works best for you is to play with the settings and see how the indicator line up w/ your strategy and with your other indicators. To determine if this indicator brings value, analyze it over different timeframes, across history and with multiple instruments.
The lengths I honestly don't know what they really mean or is supposed to determine 😅 @MerryDay
 

MerryDay

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The lengths I honestly don't know what they really mean or is supposed to determine 😅 @MerryDay
To find out how lengths effect your chart analysis.
Put in a much higher number in the 1st length variable. Analyze it over different timeframes, across history and with multiple instruments.
What difference did it make? Now make it a much lower number. Ask yourself the same questions.
Now do the same with the 2nd length variable.

This is how you become intimate with your indicators, you have to ask it questions and learn from its answers.
Doing this, will provide you a much deeper understanding of what your chart is telling you.

https://cmtassociation.org/video/volume-price-confirmation-indicator/
https://www.stockfetcher.com/forums/General-Discussion/VPCI-indicator/52357/20
 
Last edited:

TapthatAsk

Member
VIP
To find out how lengths effect your chart analysis.
Put in a much higher number in the 1st length variable. Analyze it over different timeframes, across history and with multiple instruments.
What difference did it make? Now make it a much lower number. Ask yourself the same questions.
Now do the same with the 2nd length variable.

This is how you become intimate with your indicators, you have to ask it questions and learn from its answers.
Doing this, will provide you a much deeper understanding of what your chart is telling you.

https://cmtassociation.org/video/volume-price-confirmation-indicator/
https://www.stockfetcher.com/forums/General-Discussion/VPCI-indicator/52357/20
The links are good info, you've convinced me to let my indicator seduce me, you should teach a class "Getting up close and personal with your indicators" I would pay for it 😁
 

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