How does VPT show whether it’s large or small players entering the market?


In recent [sharesansar article](, it shows different VPT values at different times. But what I don’t understand is that how does VPT differ?

Say there are total of 1000 traded, and it is traded 10 times at average of 100 units. In bull market, even if big player plans to purchase 1000 units, and they accumulate 100 units each times for 10 times. So there are 10 transactions for 1000 shares. Say big players are exiting and plan to sell 1000 shares which retail investors are purchasing, and retail investors purchase 100 units each time for 10 transactions, VPT remains constant. Or is it just looking at if there are big transactions happening which signifies bigger players are playing in the market.

I know I am missing something but I am sure what I am.

More at: r/NepalStock by roshamns

ALSO READ  Trading below fair value. #sharemarketnepal #NepalStockExchange #NEPSE.
1 Comment
  1. berojgar_keto says

    why are you assuming big players will buy 100 shares 10 times instead of buying 1000 shares at once??

    Large investors buy/sell large quantities per transaction hence higher VPT whereas small investors buy/sell small quantities per transactions hence lower VPT

Leave A Reply

Your email address will not be published.