Price-Volume Trend (PVT)
Percentage-Weighted Volume Accumulation
Overview
Price-Volume Trend (PVT) is similar to OBV but weights volume changes based on the percentage price change rather than just the direction. This makes PVT more responsive to significant price moves and better at capturing the intensity of buying or selling pressure.
PVT highlights when volume accompanies large percentage moves, making it excellent for identifying institutional accumulation and distribution.
Formula
PVT = Previous PVT + Volume × (Close - Previous Close) / Previous Close
Unlike OBV which adds/subtracts the actual volume, PVT multiplies volume by the percentage change. This amplifies signals when large volume occurs with significant price changes.
Parameters
| Parameter | Default | Description |
|---|---|---|
| source | Auto | OHLCV data source |
Use Cases
- Divergence Detection: When price reaches new highs/lows but PVT doesn't confirm
- Trend Strength: Rising PVT confirms uptrends; falling PVT confirms downtrends
- Accumulation Phase: Consistently rising PVT indicates smart money buying
- Distribution Phase: Falling PVT signals institutional selling
Advantages vs Limitations
✓ Advantages
- • More responsive than OBV to percentage moves
- • Excellent divergence indicator
- • Highlights significant volume moments
! Limitations
- • Cumulative - early values affect current reading
- • Affected by gaps and splits
- • Requires price action confirmation
Related Indicators
OBV, Chaikin Money Flow, Money Flow Index, Force Index, Accumulation/Distribution