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Trading Terms

Volume Price Trend (VPT)

A key concept in finance is the use of running sums, which track the total volume of a market over time. This approach involves adding the day's total volume to the existing sum if the market closes positively, or subtracting the total volume if the market closes lower. This method allows for a more accurate and consistent measurement of market performance. As we dive deeper into finance, we will explore the various applications of running sums and how they can inform our understanding of the market.
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