Индикатор PVT — Price Volume Trend

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Volume Price Trend Indicator (VPT)

What is a Volume Price Trend Indicator (VPT)?

The volume price trend (VPT) indicator helps determine a security’s price direction and strength of price change. The indicator consists of a cumulative volume line that adds or subtracts a multiple of the percentage change in a share price’s trend and current volume, depending upon the security’s upward or downward movements.

Example of the Volume Price Trend Indicator

Understanding Volume Price Trend Indicator (VPT)

The volume price trend indicator is used to determine the balance between a security’s demand and supply. The percentage change in the share price trend shows the relative supply or demand of a particular security, while volume indicates the force behind the trend. The VPT indicator is similar to the on-balance volume (OBV) indicator in that it measures cumulative volume and provides traders with information about a security’s money flow. Most charting software packages have the VPT indicator included.

Trading with the Volume Price Trend Indicator

Signal Line Crossovers: A signal line, which is just a moving average of the indicator, can be applied and used to generate trading signals. For example, a trader may buy a stock when the VPT line crosses above its signal line and sell when the VPT line passes below its signal line.

Confirmations: The VPT indicator can be used in conjunction with moving averages and the average directional index (ADX) to confirm trending markets. For instance, a trader could buy a stock if the 20-day moving average is above the 50-day moving average and accompanied by rising VPT indicator values. Conversely, the trader may decide to sell if the 20-day moving average is below the 50-day moving average and the indicator’s values are falling.

The ADX also measures trend and momentum and can be used with the VPT indicator to confirm that a market is trending. ADX readings above 25 indicate that a security is trending, while readings below 25 indicate sideways price action. Therefore, a trader could buy when the ADX is above 25 and the VPT line is above its signal line. They could sell when the ADX has a value below 25 and the VPT line is below its signal line.

Divergence: Traders can use the VPT indicator to spot technical divergence. Divergence occurs when the indicator makes a higher high or a lower low, but the security’s price makes a lower high or a higher low. Traders should place a stop-loss order above the most recent swing high or below the most recent swing low to minimize risk. (For more, see: What Does it Mean to Use Technical Divergence?)

Price Volume Trend (PVT)

Indicators and Strategies

Price Volume Trend (PVT)

The Price Volume Trend indicator (PVT) is a momentum based indicator used to measure money flow. PVT is similar to another technical analysis tool On Balance Volume (OBV) in that it is an accumulation of volume. While the OBV adds or subtracts total daily volume depending on if it was an up day or a down day, PVT only adds or subtracts a portion of the daily volume. The amount of volume added or subtracted to/from the PVT total is dependent on the amount of the current day’s price rising or falling compared to the previous day’s close. Price Volume Trend (PVT) can primarily be used to confirm trends, as well as spot possible trading signals due to divergences.

Read more about Price Volume Trend in TradingView wiki.

Price Volume Trend PVT MT4 Indicator

What Is Price Volume Trend MT4 Indicator?

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Based on momentum and similar to On Balance Volume Indicator, The Price Volume Trend Indicator (PVT) is an indicator used mainly to calculate money flow. The major difference between both indicators is that OBV depends on accumulation of volume by either adding or subtracting the total daily volume based on the condition of the day being up or down. On the other hand, PVT uses only part of the daily volume for addition or subtraction. PVT picks the portion of the day for addition or subtraction based on the relative price movement when compared to the movement of the previous day. Accordingly, PVT is a trend-confirmer and it is also capable of finding open positions for trading.

Calculation

PVT = [((CurrentClose – PreviousClose) / PreviousClose) x Volume] + PreviousPVT

The Basics

Momentum can be thought of as buying and selling pressure, which is measured by PVT. PVT rises when the price modified volume on up days move faster than price modified volume on down days, and PVT fails on the opposite condition. Accordingly, buying pressure is up when the PVT is up and buying pressure is down when the PVT is down, constituting the main theory of PVT that volume comes before price. This theory makes PVT unique in that it can be used in many scopes like identifying trends, confirming trends, and estimate price dynamics.

Trend Identification

Identifying trends are crucial in forex trading because they confirm signals, which makes PVT an important indicator. According to the powerful buying and selling pressure technique presented by PVT, the volume change prior to price can be used vastly in identifying trend reversals. Those privileges of PVT make it a very realistic indicator because it monitors how the market changes according to price dynamics accurately.

How to install Price and Volume Trend – PVT – indicator for MetaTrader 4.mq4?

  • Download Price and Volume Trend (PVT) indicator for MetaTrader 4.mq4
  • Copy Price and Volume Trend (PVT) indicator for MetaTrader 4.mq4 to your Metatrader Directory / experts / indicators /
  • Start or restart your Metatrader 4 Client
  • Select Chart and Timeframe where you want to test your MT4 indicators
  • Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
  • Right click on Price and Volume Trend (PVT) indicator for MetaTrader 4.mq4
  • Attach to a chart
  • Modify settings and/or press ok
  • Indicator Price and Volume Trend (PVT) indicator for MetaTrader 4.mq4 is available on your Chart

How to remove Price and Volume Trend – PVT – indicator for MetaTrader 4.mq4 from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader 4 Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete
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