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Price and Volume Trend (PVT)

The Price and Volume Trend is an indicator close to On Balance Volume using a cumulative volume total suffered adjustment. The On Balance Volume works through taking a sum of all volume of the positively closing days and subtracting the compound volume of all the lower closing days, whether the PVT carries out these operations only with a part of the volume of the day.

PVT is thought to show the money flow going into and out of security better than OBV does because it calculates the volume to add through the prices increase or decline in accordance with closing price of the day before. The principle according to which OBV works is summing an equal volume with the indicator in case the closing price of the security is a fraction higher or double.

Otherwise, PVT is supposed to add a larger part of volume to the indicator in case of significant price changes and a smaller part if the changes are less considerable.

Price and Volume Trend

The Price and Volume Trend is calculated:

[ { (Close - Yesterday's Close) / Yesterday's Close } * Volume ] + Yesterday's PVT

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