Technical Analysis  Technical Indicators  Volumes  Price and Volume Trend

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Price and Volume Trend (PVT)

Price and Volume Trend (PVT), like On Balance Volume, represents the growing sum of values of the trade volume calculated regarding the change of closing prices. In the case of OBV, we add the current volume to the current value of the indicator if the prices close on a higher level, and subtract the volume otherwise. In the case of PVT, only a part of the current volume is added to the subtracted to be added to PVT, you must guide yourself by the difference between the current price and the closing price of the previous bar.

Many investors think that PVT is more precise than OBV in showing the dynamics of trade volume. It is so because we add one and the same volume to the OBV value disregarding whether the closing price was just a little bit higher or twice as high. In the case of PVT, we add a small part of the volume to the current cumulate value if the relative change of price is not big. If the price changed considerably, a large part of the volume is added to the PVT value.


We get PVT by multiplying the current volume by the relative change of the share price and adding the result to the current cumulate value of the indicator.

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 n bars ago;
VOLUME (i) — the volume of the current bar;
PVT (i) — the current value of PVT indicator;
PVT (i - 1) — the value of PVT indicator on the previous bar.

Source Code

Full MQL4 source of On Balance Volume is available in the Code Base: Price and Volume Trend (PVT)
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