Description

• Its functionalities are quite similar to the popularly known study On Balance Volume (OBV)
• It is used to understand strength of a trend using price and volume
• It is cumulative sum of change in daily prices multiplied by volume

Interpretation

• Strong bullish trend is considered to be geared when PVT makes sharp rises
• Bearish price trend is expected after PVT falls sharply
• Since it is an absolute value with single value using price & volume, divergence is very useful to foreshadow reversals

Default Parameters Used/Inputs

• Close line

Returns/Output

PVT values of stock for each price bar

Formula