Price Volume Trend Indicator MT4
- Indicators
- Eda Kaya
- Version: 2.1
Price Volume Trend Indicator MetaTrader 4
The Price Volume Trend (PVT) Indicator is a technical analysis tool that integrates price movements with trading volume to assess the strength and reliability of market trends.
By factoring in the percentage change in the current price relative to the previous close, and multiplying that by the trading volume, this indicator reflects whether volume is supporting the prevailing price direction. When prices rise alongside increasing volume, the PVT line climbs.
Conversely, during declining prices and volume, the PVT value drops. This dynamic structure makes it useful for confirming trends and spotting early signs of potential reversals.
«Indicator Installation & User Guide»
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Price Volume Trend Specifications Table
Category | Oscillator – Volatile – Volume Trading |
Platform | MetaTrader 4 |
Skill Level | Intermediate |
Indicator Type | Continuation – Reversal |
Timeframe | Multi Time Frame |
Trading Style | Intraday Trading |
Trading Market | All Markets |
Indicator Overview
A primary function of the Price Volume Trend indicator is the detection of divergence and convergence between price and volume momentum. When the indicator's movement aligns or misaligns with price action, it may signal strength or weakness in the current trend.
Divergences—where price and the indicator move in opposite directions—can often precede reversals, while convergences reinforce the current trend.
Uptrend Conditions
In the 4-hour chart of Ripple (XRP), a clear uptrend is visible as price forms successive higher highs. Simultaneously, the Price Volume Trend indicator rises, confirming the uptrend through convergence. This alignment suggests that the increase in volume is supporting the bullish price movement.
Downtrend Conditions
In the 5-minute chart of the EUR/JPY currency pair, a weakening trend is identified. The price forms new highs after a rally, but the PVT fails to register corresponding highs. This negative divergence, combined with a drop in volume, suggests a loss of momentum and a potential reversal or correction.
Price Volume Trend Indicator Settings
- Type of Price: Defines the reference price used in calculations. Options may include Close, Open, High, or Low prices, allowing customization based on strategy preference.
Conclusion
The Price Volume Trend Indicator blends percentage-based price changes with trading volume, providing a deeper view into market strength and potential turning points. Its ability to highlight divergence and convergence makes it a valuable component in intraday and swing trading strategies.
The adjustable “Type of Price” setting enhances its flexibility, making it suitable for various analysis methods and timeframes.