What is a volume-by-price indicator?

Volume-by-Price is an indicator that shows the amount of volume for a particular price range, which is based on closing prices. Volume-by-Price bars are horizontal and shown on the left side of the chart to correspond with these price ranges. Chartists can view these bars as a single color or with two colors to separate up volume and down volume.

What is the volume-by-price indicator (VBP)?

The Volume -by-Price Indicator (VBP) is a technical analysis tool that combines price and volume data to help traders and investors identify key price levels where significant trading activity has occurred.

How do volume-by-price bars work?

Volume-by-Price bars are horizontal and shown on the left side of the chart to correspond with these price ranges. Chartists can view these bars as a single color or with two colors to separate up volume and down volume. By combining volume and closing prices, this indicator can identify high-volume price ranges to mark support or resistance.