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Note: This download requires NinjaTrader 8 release 8.1.3 or newer.

Introduction to the Volume Price Confirmation Indicator (VPCI)

The Volume Price Confirmation Indicator for NinjaTrader is a technical analysis tool that combines price and volume data to assess the strength of a trend. It helps traders determine whether the volume is confirming the price movement (indicating a strong trend) or contradicting it (suggesting a potential weakening or reversal).

Key Components of the VPCI:

1. Price Moving Averages: Short-term and long-term averages
2. Volume Moving Averages: Short-term and long-term trading volume
3. Volume Price Change (VPC): The difference between the long-term and short-term price averages. This indicates the price momentum.
4. Volume Price Ratio (VPR): The ratio of the short-term price average to the long-term price average. This measures the relative strength of recent price movements.

How Does the VPCI Work?

• Positive VPCI Values: Suggest that volume is confirming the price trend.
• Negative VPCI Values: Suggest that volume is contradicting the price trend.
• Near-Zero VPCI Values: Implies a neutral state with no significant confirmation or contradiction.

Customization Options

The VPCI can be tailored to fit your trading style and the specific market you are trading. Below are the key customization options:

1. Data Input Source

• Options:
  • Close: Uses closing prices.
  • High, Low, Open: Uses specific price points.
  • Average Prices: HL2 (average of high and low), HLC3 (average of high, low, and close), OHLC4 (average of open, high, low, close).
  • VWAP: Volume Weighted Average Price.
• Benefit: Allows you to select the price data most relevant to your analysis.

2. Use Weighted Price

• Description: When enabled, the indicator uses weighted prices instead of volume-weighted prices for calculations.
• Benefit:
  • Weighted Price: May provide smoother curves and be more responsive to price changes.
  • VWAP: Reflects the average price considering the volume traded at each price level.

3. Periods for Moving Averages

• Short-Term Period (Default: 5): Determines the sensitivity to recent price and volume changes. Shorter periods make the indicator more responsive.
• Long-Term Period (Default: 24): Provides a broader view of the trend. Longer periods smooth out short-term fluctuations.

4. Smoothing the VPCI

• Smoothed VPCI Period (Default: 8): Applies an additional moving average to the VPCI for smoothing.
• Smoothing Average Type: Adjusts the smoothness and responsiveness of the VPCI signal line.  Options: Simple, Exponential, Weighted, etc.

5. Bollinger Bands Settings

• Show Upper/Lower Bands: Enables Bollinger Bands around the VPCI.
• Bollinger Bands Period (Default: 54): The period over which the center line (moving average) is calculated.
• Center Line Average Method: Options: Simple, Exponential, Weighted, etc.
• Standard Deviation Factor (Default: 1.5): Adjusts the width of the Bollinger Bands.
• Benefit: Bollinger Bands help identify overbought and oversold conditions in the VPCI.

6. Visual Enhancements

• Show Shade: Adds shading to the areas above the Upper Band (supply zone) and below the Lower Band (demand zone).
• Shade Opacity: Adjusts the transparency of the shaded areas.
• Demand Zone Brush (Color): Sets the color for the demand zone shading.
• Supply Zone Brush (Color): Sets the color for the supply zone shading.

Review the screenshots and video for setup options.

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