As adjusted cumulative total of volume, the Price and Volume Trend(PVT) is similar to On Balance Volume(OBV) indicator. The OBV adds all volume on days when prices close higher and subtracts all volume on days when prices close lower, where the Price and Volume Trend adds or subtracts only a portion of the daily volume.
As the amount of volume added to the PVT is determined by the amount that prices rose or fell relative to the previous day's close, many claim it can more accurately illustrate the flow of money into and out of a security than can the OBV. Remind that the OBV is designed so that it adds the same amount of volume to the indicator if the security closes up a fraction or doubles in price. The PVT on the other hand, adds a small portion of volume to the indicator when the price changes by a small percentage and a large portion of volume to the indicator with large changes in the price.
Calculation:
PrevPrice = The previous price
PrevPVT = The previous value of the indicator
Inputs:
Price Field = Close
Indicates Open, High, Low or Closing price.
Indicator Type: Market Strength