Calculating the Price and Volume Trend Indicator
Summary
The document introduces Price and Volume Trend (PVT), a cumulative indicator that combines price changes with trading volume. For each bar, it weights the close-to-close percentage change by that bar’s volume, then adds the resulting values over time. This makes the indicator reflect both the direction of price movement and the amount of trading activity accompanying it.
The page identifies closing price and volume as required inputs and names a bar-count parameter, but it does not explain how that parameter affects the calculation. It also offers no interpretation rules, signal thresholds, chart examples, or empirical test results. PVT is presented as an indicator definition, so the document alone does not establish whether it predicts returns or how it should be used in a trading strategy.
Key ideas
- PVT combines close-to-close percentage changes with trading volume.
- Each bar’s contribution is accumulated to form the indicator series.
- The document specifies closing price and volume as inputs.
- It gives no trading rules or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.