Price and Volume Trend


Price and Volume Trend

Price and Volume Trend (PVT) is a technical analysis indicator intended to relate price and volume in the stock market. PVT is based on a running total volume, with volume added according to the percentage change in closing price over the previous close.

The formula is

: PVT = PVT_{prev} + volume imes { close_{today} - close_{prev} over close_{prev} }

The starting point for the PVT total, ie. the zero point, is arbitrary. Only the shape of the resulting indicator is used, not the actual level of the total.

PVT is similar to On-balance Volume (OBV), but where OBV takes volume just according to whether the close was higher or lower, PVT includes how much higher or lower it was.

PVT is interpreted in similar ways to OBV. Generally the idea is that volume is higher on days with a price move in the dominant direction, for example in a strong uptrend more volume on up days than down days. So when prices are going up, PVT should be going up too, and when prices make a new rally high, PVT should too. If PVT fails to go past its previous rally high then this is a negative divergence, suggesting a weak move.

Similar indicators

Other Price × Volume indicators:
* Money Flow
* On-balance Volume
* Accumulation/distribution index

See also

* Dimensional analysis - explains why volume and price are multiplied (not divided) in such indicators

External links

* [http://www.chartfilter.com/reports/c36.htm Price and Volume Trend] at ChartFilter


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Price channels — Trend channel A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity.[1] Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support …   Wikipedia

  • Price — For the surname, see Price (surname). For other uses, see Price (disambiguation). Contents 1 Definition 2 Economic Definition 3 …   Wikipedia

  • Trend — The general direction of a market or of the price of an asset. Trends can vary in length from short, to intermediate, to long term. If you can identify a trend, it can be highly profitable, because you will be able to trade with the trend. As a… …   Investment dictionary

  • Volume Price Trend Indicator - VPT — A technical indicator consisting of a cumulative volume line that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements. This indicator is used to… …   Investment dictionary

  • On-balance volume — (OBV) is a technical analysis indicator intended to relate price and volume in the stock market. OBV is based on a cumulative total volume.[1] Contents 1 The formula 2 Application 3 …   Wikipedia

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

  • Market trend — Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. A market trend is a putative tendency of a financial market to move in a particular direction over time.[1] These trends are… …   Wikipedia

  • Negative volume index — Nearly 75 years have passed since Paul L. Dysart, Jr. invented the Negative Volume Index and Positive Volume Index indicators. The indicators remain useful to identify primary market trends and reversals. In 1936, Paul L. Dysart, Jr. began… …   Wikipedia

  • Double top and double bottom — are reversal chart patterns observed in the technical analysis of financial trading markets of stocks, commodities, currencies, and other assets. Double top Double top confirmation The double top is a frequent price formation at the end of a bull …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.