Introduction
The trend of price and volume (PVT) is an indicator of the aggregate amount of the total, adjusted in accordance with the relative changes in closing prices. This indicator reminds the meaning Weighted volume (OBV).
Description
Trend Indicator of price and volume is calculated by adding the percentage of volume when the price rose with the increase, and subtracting percent of the volume when the price closes down (for comparison, the volume indicator weighting adds full amount when the price closed with increase, and deduct the full amount, when prices closed down.) Number of the volume, add or subtract to the indicator PVT, depends on the amount by which the price increased or decreased on the previous day's closing.
• When the price changes to a small percentage, an indicator PVT adds only a small portion of the amount to the value of the indicator.
• When the price changes to a higher percentage, the indicator most of the PVT adds volume to the value of the indicator.
PVT divergence between the indicator and the price shows the potential for further increase in the price
Calculation
Trend Indicator of price and volume is calculated by multiplying the daily volume on the percentage change in closing price in relation to the closure yesterday and adding this value to a cumulative total number. For example, if the market closed with a tool to increase 0.5%, and the volume amounted to 10,000 shares, then we would have added 50 (ie, 0.005 * 10.000 = 50) to the value of the indicator PVT. If the price closed down by 0.5%, then we would be deducted from the value of the indicator 50 PVT.
Interpretation
• When the PVT is falling, then the outflow of money from the market (falling price accompanied by an increase in volume).
• When the PVT is increased, then the flow of money in the market (prices and volume increase together).
The trend of price and volume is a leading indicator for future price movements. Although the interpretation of PVT is similar to the indicator and the indicator OBV Accumulation / Distribution indicator PVT more accurately demonstrates the flow of money. Indicator PVT adds only a proportional amount of volume to the value of the indicator, while the indicator OBV adds the same amount of volume, no matter whether the market rose with the increase of one point or price increases several times.
1. PVT rising indicator means new money, sometimes referred to as "fast money" coming into the market. As a result, this would mean that the current trend will continue. Accelerating raise indicates the market participants attracted by the new price trend.
2. If then the indicator is aligned PVT is often an early warning that the trend is over.
3. Reducing PVT indicator indicates that the "fast money" away from the marketplace.
4. When the PVT is moving sideways or declining, while the price rises, the increase in prices was not confirmed by volume and this may indicate a top or base of the market.
Alerts
The main signal occurs when a divergence between the indicator and the price PVT.
In the above example, Bull divergence was established in two cases (indicator PVT develops trend upward, while the price trend to develop down), accompanied by a strong increase in prices in both cases.
The trend of price and volume (PVT) is an indicator of the aggregate amount of the total, adjusted in accordance with the relative changes in closing prices. This indicator reminds the meaning Weighted volume (OBV).
Description
Trend Indicator of price and volume is calculated by adding the percentage of volume when the price rose with the increase, and subtracting percent of the volume when the price closes down (for comparison, the volume indicator weighting adds full amount when the price closed with increase, and deduct the full amount, when prices closed down.) Number of the volume, add or subtract to the indicator PVT, depends on the amount by which the price increased or decreased on the previous day's closing.
• When the price changes to a small percentage, an indicator PVT adds only a small portion of the amount to the value of the indicator.
• When the price changes to a higher percentage, the indicator most of the PVT adds volume to the value of the indicator.
PVT divergence between the indicator and the price shows the potential for further increase in the priceCalculation
Trend Indicator of price and volume is calculated by multiplying the daily volume on the percentage change in closing price in relation to the closure yesterday and adding this value to a cumulative total number. For example, if the market closed with a tool to increase 0.5%, and the volume amounted to 10,000 shares, then we would have added 50 (ie, 0.005 * 10.000 = 50) to the value of the indicator PVT. If the price closed down by 0.5%, then we would be deducted from the value of the indicator 50 PVT.
Interpretation
• When the PVT is falling, then the outflow of money from the market (falling price accompanied by an increase in volume).
• When the PVT is increased, then the flow of money in the market (prices and volume increase together).
The trend of price and volume is a leading indicator for future price movements. Although the interpretation of PVT is similar to the indicator and the indicator OBV Accumulation / Distribution indicator PVT more accurately demonstrates the flow of money. Indicator PVT adds only a proportional amount of volume to the value of the indicator, while the indicator OBV adds the same amount of volume, no matter whether the market rose with the increase of one point or price increases several times.
1. PVT rising indicator means new money, sometimes referred to as "fast money" coming into the market. As a result, this would mean that the current trend will continue. Accelerating raise indicates the market participants attracted by the new price trend.
2. If then the indicator is aligned PVT is often an early warning that the trend is over.
3. Reducing PVT indicator indicates that the "fast money" away from the marketplace.
4. When the PVT is moving sideways or declining, while the price rises, the increase in prices was not confirmed by volume and this may indicate a top or base of the market.
Alerts
The main signal occurs when a divergence between the indicator and the price PVT.
In the above example, Bull divergence was established in two cases (indicator PVT develops trend upward, while the price trend to develop down), accompanied by a strong increase in prices in both cases.
Forex Magazine
based on www.chartfilter.com
based on www.chartfilter.com
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