The oscillator version of the Price Volume Trend indicator (PVT) can be considered as a leading indicator of future price movements. The PVT Indicator is similar to the On Balance Volume indicator as it is also used to measure the strength of a trend.
The difference between the OBV and the PVT is that where the OBV adds all volumes when price achieves higher daily closes and subtracts them when price registers a lower daily close, the PVT adds or subtracts only a portion of the volume from the cumulative total in relation to a percentage change in price. The general market consensus is that this difference enables the PVT to more accurately represent money flow volumes in and out of a stock or commodity.
The PVT has been designed so that it is capable of forecasting directional changes in price. For instance, if the price of a stock is rising and the PVT begins to fall, then this is indicative that a price reversal could occur very soon. The general consensus is that the PVT is more accurate at detecting new trading opportunities than the OBV because of the differences in their construction. The OBV is designed so that it adds the same amount of volume whether the price closes upwards by just a small fraction or by multiples of its day opening value. On the other hand, the PVT adds volume proportional to the amount the price closed higher.
General Usage Plain old PVT can be used to confirm trends, as well as spot possible trading signals due to divergences. A benefit of the oscillator version is that it can produce LONG or SHORT signals on zero line cross. Or controversy, disallow LONG trades in bearish territory and disallow SHORT trades in bullish territory.
Moving Averages 4 different Moving Averages are available:
EMA (Exponential Moving Average)
SMA (Simple Moving Average)
VWMA (Volume Weighted Moving Average)
WMA (Weighted Moving Average)
Informacje o Wersji
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Optional moving average overlay added
Four types of MA are choosable
Minor enhancement to coloring and drawings
The oscillator version of the Price Volume Trend indicator (PVT) can be considered as a leading indicator of future price movements. The PVT Indicator is similar to the On Balance Volume indicator as it is also used to measure the strength of a trend. The difference between the OBV and the PVT is that where the OBV adds all volumes when price achieves higher daily closes and subtracts them when price registers a lower daily close, the PVT adds or subtracts only a portion of the volume from the cumulative total in relation to a percentage change in price. The general market consensus is that this difference enables the PVT to more accurately represent money flow volumes in and out of a stock or commodity. The PVT has been designed so that it is capable of forecasting directional changes in price. For instance, if the price of a stock is rising and the PVT begins to fall, then this is indicative that a price reversal could occur very soon. The general consensus is that the PVT is more accurate at detecting new trading opportunities than the OBV because of the differences in their construction. The OBV is designed so that it adds the same amount of volume whether the price closes upwards by just a small fraction or by multiples of its day opening value. On the other hand, the PVT adds volume proportional to the amount the price closed higher.
General Usage Plain old PVT can be used to confirm trends, as well as spot possible trading signals due to divergences. A benefit of the oscillator version is that it can produce LONG or SHORT signals on zero line cross. Or controversy, disallow LONG trades in bearish territory and disallow SHORT trades in bullish territory.
Moving Averages Four different types of Moving Averages are available for both PVT and the optional moving average of the PVT.
EMA (Exponential Moving Average)
SMA (Simple Moving Average)
VWMA (Volume Weighted Moving Average)
WMA (Weighted Moving Average)
Informacje o Wersji
⋅
Changelog:
* Added signals for crosses * Added alarms * Updated script to display values normalized to avoid extreme readings
@dogspot65, thanks for the indicator. I have found it most useful when trading with the PPO in the positive territory. Seems to be very accurate using the 4 hour time frame.
krishina
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The indicators are getting better and better!! Focusing on volume and strength
madhutiwari05678
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Ok
enmikz
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Great indicator. Thanks.
sbmortimer
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@UberTradingSystems, This indicator has been very useful for me! Could you explain the orange and green dots on the zero line? They don't always appear at the same time as the color change. I didn't see anything about the dots in your description. Thanks.
UberTradingSystems
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@sbmortimer, the coloured dots indicate the bear/bull signal. It's drawn as a helper to visualise when the zero line is actually crossed.
But, why does the signal not work when I put:
"Cross Up" - "GreaterThan" - "0"
Sorry to bother you, I'm a beginner trader. Could you please help me? Thank you in advance!