✔️ Information reviewed and updated in November 2023 by Eduardo López
Prices are one of the most important factors in deciding whether an asset is worth buying, selling, or holding positions. There are many ways to see the price trend, one of them is through the volume price trend indicator.
➡What does this indicator consist of? ✨
Much like the OBV, this indicator shows us how money flows are related, entering and leaving, in an asset. In this way, we can foresee changes both in its liquidity and in its price or value.
If we see that the trend in volume prices oscillates significantly, quite strongly, it is because prices have had drastic changes along with large volumes. This can be an indicator of the potential behavior that the asset will have, which will help us decide what to do when investing.
➡What we must take into account of the trend of volume prices✨
When a bearish divergent appears, it can cause a general downward shift across the market. The same happens, but in the opposite direction, when the divergent is bullish, thus creating an upward trend.
Using the volume price trend indicator allows us to know which path the market will follow with respect to prices and transaction volumes. Although this indicator is not so well known, it can be really useful when making financial decisions.
