Price Volume Trend (PVT)
A cumulative volume indicator that refines OBV by scaling volume by the size of the price change — letting the strength of each day's move register in the slope of the line.
Overview
Price Volume Trend (PVT) is a cumulative volume indicator that sharpens the OBV idea by one important step. Where OBV adds or subtracts each day's entire volume based on the binary direction of the close, PVT weights each day's volume by the percentage change in price before adding it.
In OBV, a +0.1% day and a +3.0% day both count as up days and contribute their full volume to the running total. The size of the conviction behind the move is discarded. PVT corrects this. On a +0.1% day, only 0.1% of that day's volume is added; on a +3.0% day, 3.0% is added. The strength of conviction now registers in the slope of the cumulative line.
The result is a cumulative line that is far more responsive to the magnitude of moves than OBV — and consequently, often earlier to signal when conviction begins to fade.
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