Price Volume Trend (PVT) - Indicator Formula

It measures the percentage change in the closing price relative to the volume and accumulates it. Its calculation is similar to that of the OBV, but only a part proportional to the actual price change is added (subtracted).

Its formula is as follows:

PVT( t ) = ( (C( t ) - C( t - 1 ) / C( t - 1 ) ) * V( t ) ) + PVT( t - 1 )

where:

PVT( t - 1 ) = value of the PVT of the previous period

C( t ) = current closing

C( t - 1 ) = closing of the previous day

V( t ) = volume of the current day

This operating system makes the volume usable as an operational tool.