Extra indicators
PVT: Price Volume Trend
A running total of volume, added or subtracted in proportion to each candle's percentage change.
The idea in plain words
Like On Balance Volume, PVT asks whether volume flows into rises or falls, but it weighs each candle's volume by how far the price actually moved.
How it is calculated
Each candle adds volume × (close − previous close) ÷ previous close to the running total.
PVT = PVT₋₁ + volume × (close − close₋₁) ÷ close₋₁How to use it
- Rising PVT confirms an uptrend; falling PVT confirms a downtrend.
- Divergences warn that a trend lacks support.
Drawing conclusions
- The absolute level means nothing; the direction and divergences do.
Example
MSFT daily: the price makes a new high but PVT does not; the rally has less volume behind it than the last one.
Prices in examples are illustrative.
Watch out for
- Tick volume on CFDs approximates real volume.
A little history
A long-standing volume indicator, a refinement of Joseph Granville's On Balance Volume (1963).
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.