Price Volume Trend
Volume & money flow
A refinement of the classic On Balance Volume: instead of adding or subtracting the full volume, the PVT counts only the part that corresponds to the percentage price move.
In its original form this indicator uses volume and/or the daily range (High/Low). The scanner only has closing prices and approximates those inputs (see the note at the bottom). So treat the absolute values as indicative; the direction and the crossings remain usable.
Construction & calculation
- Compute the percentage price change relative to yesterday.
- Multiply that by today's volume.
- Add the result to yesterday's PVT — the line is cumulative.
PVT = PVT(yesterday) + Volume x (C(today) - C(yesterday)) / C(yesterday)
Interpretation
- The PVT weights volume by the size of the price move: a +5% day counts five times as heavily as a +1% day.
- That makes it more sensitive and more nuanced than the OBV.
- As with the A/D line, direction matters, not level, and divergences are the most powerful use.
How the signal works in this scanner
Buy signal (green)Bullish divergence over a 20-bar window: the price makes a lower low in the last 5 bars, while the PVT makes a higher low.
Sell signal (red)Bearish divergence: the price makes a higher high, the PVT lags.
Watch-outs & pitfalls
- As a cumulative line, the absolute value depends on the starting point of the series. Never compare it between stocks.