Price Volume Trend: Relating Volume to Daily Price Changes
Summary
Price Volume Trend (PVT) is described as a cumulative indicator that combines trading volume with the percentage change in price relative to the previous close. Volume is added to or subtracted from the running indicator according to the direction and relative size of that price move. The document compares its interpretation with On Balance Volume and the Accumulation/Distribution indicator.
The indicator is presented without configurable parameters. The text does not include the calculation formula itself, chart examples, trading rules, or empirical evidence, so it offers only a brief conceptual description. It does not explain how to resolve conflicting signals or how PVT should be tested in a specific market. Traders would need additional documentation and independent evaluation before using it as part of a strategy.
Key ideas
- PVT combines volume with the price change relative to the prior close.
- The volume contribution is signed by the direction of the price move and scaled by its relative size.
- Its interpretation is compared with On Balance Volume and Accumulation/Distribution.
- The document specifies no adjustable indicator parameters.
- It supplies no formula details, trading rules, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.