Volume Average Percent Indicator
The Volume Average Percent Indicator (VAPI) is a technical analysis tool used to assess the strength of a price move in relation to trading volume over a specified period. It calculates the percentage of current volume compared to the average volume over that same period, helping traders identify potential trends or reversals. A higher percentage indicates stronger trading activity, which may validate the current price movement, whereas a lower percentage could suggest a lack of enthusiasm or sustainability behind the move. VAPI can be particularly useful in confirming signals generated by other indicators or for gauging market sentiment.