Forex Questions and Answers - FXAnswer

A technical indicator consisting of a cumulative volume line that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.

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certicex

1 year ago

In Forex terms, expert consensus favors the PVT as a more accurate indicator for measuring money flow out and in of currency pairs. The PVT exploits a volume line as a means of monitoring the percentage change in the price trend of a currency pair as a method of determining the market’s supply or demand of the pair. One of the PVT’s main design features is that it is capable of forecasting the directional changes in price. For example, if the price of a currency pair is falling, but the readings of the PVT begin to rise, then you should consider that this is a strong buy signal.

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Harold

1 year ago

This indicator is a short-term indicator best used for signal confirmation. The value of this indicator is that both price and volume are combined into a single indicator. Volume/Price Trend is computed as an exponentially smoothed average of the ratio of percentage price change and the percentage of volume above and below average volume. This indicator is very sensitive to changes in price action. Periods of average volume will precede periods of higher volume when price action is already taking place. The Volume/Price Trend indicator attempts to anticipate price action by measuring price changes during periods of average, or normal, volume. Because the Volume/Price Trend indicator gives short-term, quick confirmation, it is best used when trading equity options.

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Suneetha

1 year ago

Price Volume Trend combines percentage price change and volume to confirm the strength of price trends or through divergences, warn of weak price moves. Unlike other price-volume indicators, the Price Volume Trend takes into consideration the percentage increase or decrease in price, rather than just simply adding or subtracting volume based on whether the current price is higher than the previous day's price. How the formula is calculated is presented below:

1. On an up day, the volume is multiplied by the percentage price increase between the current close and the previous time-period's close. This value is then added to the previous day's Price Volume Trend value.
2. On a down day, the volume is multiplied by the percentage price decrease between the current close and the previous time-period's close. This value is then added to the previous day's Price Volume Trend value.

The Price Volume Trend is helpful in seeing divergences.

Source(s):

http://www.onlinetradingconcepts.com/ TechnicalAnalysis/PriceVolumeTrend.html

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Kingpin

1 year ago

Price and Volume Trend (PVT) is a technical analysis indicator intended to relate price and volume in the stock market. PVT is based on a running total volume, with volume added according to the percentage change in closing price over the previous close.

Source(s):

en.wikipedia.org/wiki/Price_and_Volume_Trend

by

Kingpin

1 year ago