📊 TECHNICAL
Price Volume Trend (PVT)
A cumulative volume line similar to On-Balance Volume, but weighted by the percentage size of each bar's price move rather than a flat add or subtract.
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Live Demo — Price Volume Trend (PVT) applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is Price Volume Trend?
PVT is a running cumulative indicator in the same family as On-Balance Volume, but scales the volume it adds by how large the price move actually was in percentage terms, making it more sensitive to move magnitude, not just direction.
Formula
PVT(t) = PVT(t-1) + Volume(t) * (Close(t)-Close(t-1)) / Close(t-1)Parameters
| Parameter | Default | Description |
|---|---|---|
| Starting value | 0 | Baseline the cumulative line starts from; only shape/slope matters |
Signal Interpretation
- A rising PVT line confirms an uptrend backed by proportionally strong volume on up-moves.
- A falling PVT line confirms a downtrend backed by proportionally strong volume on down-moves.
- Divergence between PVT and price can flag weakening participation behind the trend.
- Big single-day percentage swings leave a bigger mark on PVT than on OBV.
- A trendline break on PVT itself is sometimes used as a standalone signal.
Tips & Best Practices
- Read PVT's slope and divergence with price rather than its absolute cumulative value.
- Pair with a moving average of PVT to smooth noise and spot slope changes.
- Percentage-weighting makes it comparable across instruments with different price levels.