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Price Volume Trend (PVT)

Also called Volume Price Trend (VPT). This indicator is similar to On Balance Volume (OBV) and looks at the strength of trends and give off warnings if a reversal is approaching. It does this by looking at the balance between demand and supply of the market.

Example

Interpretation

If the Price Volume Trend rises, this gives a signal of an upward trend.
When price rises higher but the PVT falls lower (a bullish divergence), this gives a signal of a bottom.

If the PVT falls, this signals of a downward trend.
When the price falls lower but the PVT rises higher (a bearish divergence), this gives a signal of a top.

Calculation

Closing Price of Today - Closing Price of Yesterday / Closing Price of Yesterday
Percentage Change * Volume of Today
Percentage Change * Volume Today + PVT of Yesterday

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