Volume Trend Node
Cumulative Price-Volume Trend (PVT)
Overview
The Volume Trend Node computes the cumulative Price Volume Trend (PVT). PVT is closely related to OBV but refines it by weighting the added volume proportionally to the percentage price change rather than adding all volume when price goes up and subtracting all volume when price goes down.
This makes PVT more responsive to the magnitude of price changes: a 5% up day adds 5× more volume to the cumulative total than a 1% up day with the same volume. The result is a running cumulative sum that rises during bullish volume-supported trends and falls during bearish distribution. The output is unbounded and depends on the starting point, so absolute levels are less meaningful than the slope and divergence patterns.
Algorithm
Parameters
No configurable parameters. Volume Trend accumulates all bars from the beginning of the data series.
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | OHLCV | Standard OHLCV price and volume data |
| values | Output | (number | null)[] | Cumulative PVT value (unbounded, rising = bullish) |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Trend Confirmation via Slope
Apply a short EMA (10–20 period) to the Volume Trend output to smooth the slope. When the smoothed PVT is rising in sync with price, the uptrend has volume confirmation. When PVT slope flattens or turns negative while price continues rising, volume is no longer supporting the move — a divergence warning.
Price-Volume Divergence Detection
Compare the raw PVT chart to the price chart: if price is making new highs but PVT peaks are lower (bearish divergence), the rally lacks proportional volume support. If price is making new lows but PVT troughs are higher (bullish divergence), selling volume is diminishing — a potential bottoming signal.
Breakout Qualification
When price breaks a resistance level, check if PVT also breaks to a new multi-week high on the same bar. A dual breakout (price + PVT) is a much higher conviction signal than a price breakout that fails to be accompanied by a PVT breakout, which suggests the breakout may be driven by thin-volume momentum.
Tips & Best Practices
PVT vs OBV: Use PVT for Proportional Changes
OBV adds or subtracts all volume based solely on price direction, giving equal weight to a +0.01% move and a +10% move. PVT weights volume by percentage change, so large moves contribute proportionally more. PVT is generally more stable and less prone to distortion by small choppy price moves.
Absolute Level Depends on Start Date
Like OBV, the absolute value of PVT is arbitrary — it depends on the starting bar and the initial seed value. Only the slope, highs, lows, and divergence patterns are meaningful. Normalize by dividing by the maximum |PVT| value over the analysis period if you need a bounded comparison metric.
Sensitive to Price Scale Changes
For high-priced assets (e.g., BTC at $60,000), the percentage change is small so PVT accumulates slowly. For lower-priced assets with the same percentage moves, PVT accumulates faster. Don't compare the absolute PVT magnitude between two different instruments — focus on each instrument's PVT relative to its own historical range.