Skip to main content

Volume Price Confirmation Indicator (VPCI): Settings, Signals, and a Practical TradingView Guide

· 5 min read
Pineify Team
Pineify Team

The Volume Price Confirmation Indicator (VPCI) blends price and volume so you can tell whether a move has real participation behind it. When price pushes and volume agrees, the signal is stronger. When they disagree, be careful.

What VPCI Actually Tells You​

The idea is simple: price moves are more trustworthy when volume agrees. VPCI is a single line that oscillates around zero. Above zero means buying pressure has volume behind it; below zero means selling pressure does. Sharp pushes outside its bands often mark "this move has juice" moments.

Volume Price Confirmation Indicator (VPCI) on TradingView

How it’s built (quick version):

  • VPC: volume‑weighted MA minus simple MA
  • VPR: short VWMA divided by short SMA
  • VM: short volume MA divided by long volume MA

Multiply those and you get VPCI. Don’t worry about the math—focus on how the line behaves around zero and its moving average.

Best Settings (A Solid Starting Point)​

These defaults work well for many markets and timeframes. Tweak from here instead of starting from scratch.

  • Short term period: 5
  • Long term period: 20
  • VPCI moving average: 8
  • Bollinger length: 20
  • Bollinger multiplier: 3

What to adjust:

  • Choppy markets: increase lengths a bit to smooth noise
  • Fast markets: shorten lengths for quicker signals
  • Swing vs intraday: longer for swing, shorter for intraday

How to Add VPCI in TradingView (via Pineify)​

Add and customize indicators in Pineify, then send to TradingView
  1. Open Pineify and search “Volume Price Confirmation Indicator.”
  2. Select it and keep the defaults to start.
  3. Click generate to create Pine Script.
  4. Copy the code into TradingView’s Pine Editor and add to chart.

It’ll plot in a separate pane with its signal line, a moving average, a zero line, and optional bands/breach markers.

If you’re learning Pine Script as you go, bookmark these strategy examples: https://pineify.app/resources/blog/pine-script-v6-strategy-examples

How to Read the Signals​

  • Above zero: bullish pressure has volume behind it
  • Below zero: bearish pressure has volume behind it
  • Cross above zero: momentum shift to buyers
  • Cross below zero: momentum shift to sellers
  • Cross above its MA: fresh push with confirmation
  • Cross below its MA: momentum losing steam
  • Breach outside bands: impulse move worth attention (don’t chase blindly)
  • Divergences: price makes a new high/low but VPCI doesn’t—often an early clue

If you already use RSI or Bollinger Bands, this combo guide pairs nicely with VPCI: https://pineify.app/resources/blog/bollinger-rsi-indicator-tradingview-pine-script

A Simple Strategy You Can Test​

This is not financial advice—just a clean template you can modify.

Long idea

  • VPCI crosses above zero and above its MA
  • Price above a basic trend filter (e.g., 200‑EMA)
  • Optional: ignore entries if VPCI is already stretched beyond its upper band

Short idea

  • VPCI crosses below zero and below its MA
  • Price below the 200‑EMA
  • Optional: avoid entries when VPCI is far beyond the lower band

Risk and exits

  • Initial stop: recent swing or a fixed ATR multiple
  • Take profit: partial at 1R, trail remainder with a moving stop
  • Time stop: exit after N bars if nothing happens

Backtesting basics: start on one market and one timeframe, then try two more. Track win rate, average R, max drawdown, and how often entries trigger too late.

If you prefer a pure volume oscillator for comparison, check OBV Oscillator: https://pineify.app/resources/blog/on-balance-volume-oscillator-indicator-tradingview-pine-script

Common Mistakes (And Easy Fixes)​

  • Chasing band breaches: wait for a pullback or a structure break

  • Ignoring trend: combine VPCI with a simple trend filter

  • Overfitting: tiny changes that only help last month’s data rarely hold up

  • Using one timeframe: always sanity‑check a higher timeframe

FAQ​

Does VPCI work on all timeframes?

  • Yes. Shorten lengths for intraday; lengthen for swing/position.

Is it a standalone indicator?

  • You can use it alone, but it shines when paired with a trend filter (EMA/ADX) or a mean‑reversion tool (RSI/Bollinger).

How do I use divergences?

  • If price makes a new high but VPCI doesn’t, the buying pressure may be fading. Treat it as an early heads‑up, not a blind reversal signal.

What does the zero line mean?

  • Think of it as the balance point. Crosses through zero often mark a change in who’s in control.

Any good next steps to learn Pine Script?

  • Start with one small strategy and iterate. Keep notes.

Bottom Line​

VPCI is a straightforward way to check whether price moves have volume behind them. Use the zero line, the VPCI moving average, and band extremes as your main reads. Keep the defaults, test a simple rule set, and only tweak what clearly improves results across more than one market.

If you want a complementary read on trend quality, start here: