Price Volume Trend Index (PVT)
The price volume trend indicator (PVT), similar to the energy tide indicator, shows the change in the closing price of the total volume of growth transactions. In the case of OBV, if the closing price is at a high level, we add the current volume to the current indicator value and go to the rest of the value. In the case of PVT, only part of the current volume is added minus the value of PVT, you have to indicate the difference between the current price of the previous bar and the closing price.
Many investors believe that PVT can show more details than OBV in terms of trading volume. This is because it is related to the same value we added to the OBV, and the closing price is higher than the second value. In the case of PVT, we add a small part of the current accumulated value if the relevant price does not change much. If you consider price changes, most of the volume will be added to the PVT value.
Price volume trend indicator
PVT index value calculation method:
The PVT index value is calculated by the following formula.
PVT (i) = ((CLOSE (i)-CLOSE (i-1)) / CLOSE (i-1)) * VOLUME (i) + PVT (i-1)
CLOSE (i) — the closing price of the current bar;
CLOSE (i-n) — the closing price of n bars;
VOLUME (i) — the volume of the current bar;
PVT (i) — current value of PVT index;
PVT (i-1) — PVT index value of the previous bar.