How to use the Price Volume Trend Indicator (PVT) when Trading (2025)

Learn how the Price Volume Trend (PVT) indicator works in identifying trend strength and reversals for the year 2025. Explore advanced trading setups using PVT divergences, and how to combine this volume-weighted indicator with support/resistance levels for better entry and exit points. Now also integrated with artificial intelligence technology, improving prediction accuracy by 18% through sentiment data correlation, providing mobile-optimized tools for real-time monitoring, and conducting cross-timeframe analysis to ensure signal consistency across multiple assets.

2025 Price Trading Volume Trend Indicator (PVT) Latest Developments

The Price Volume Trend (PVT) indicator has significantly developed by 2025, showing advanced applications in cryptocurrency trading. Major developments include:

• Integration with artificial intelligence algorithms enhances prediction accuracy by correlating the trading volume-price relationship with market sentiment data.
• Mobile-optimized PVT tool that allows traders to monitor the divergence of multiple assets in real-time.
• Cross-time period analysis function to identify consistency between short-term and long-term PVT signals.

Advanced traders are now combining PVT with machine learning models to filter out false signals, particularly in the volatile cryptocurrency market. Platform data shows that the signal accuracy using these hybrid methods has improved by 18% compared to traditional PVT analysis.

The PVT indicator remains an important tool for cryptocurrency traders, and its Trading Volume adjustment method is essential for accurately identifying sustainable trends. Price Trend In terms of temporary fluctuations, it continues to outperform simpler Trading Volume indicators.

Look at the indicators, learn to trade - how to make price predictions and investments based on the Price Volume Trend (PVT) indicator?

• The price trading volume trend indicator aims to establish the relationship between asset prices and their Trading Volume.
• Traders can use the PVT indicator to predict price movements and confirm their trends.
• Divergence occurs when the indicator moves in the opposite direction to the asset price.
• The PVT indicator is more accurate than the OBV indicator because it includes the magnitude of price changes.

Introduction

Most traders use price trends to determine the buy and sell points of their trades. However, it is important to note that sometimes relying solely on price trends to judge trading timing can lead to misleading signals, which is why most people adopt technical analysis indicators. Traders often use an indicator that shows changes in Trading Volume to compensate for the limitations of price trends. Such technical analysis tools include the On-Balance Volume (OBV) indicator and the Price Volume Trend indicator. This text will focus on the Price Volume Trend indicator.

The Price Volume Trend (PVT) indicator is a measure of the money flow swings of an asset. In other words, it measures the inflow and outflow of funds for cryptocurrencies like Bitcoin. It is important to note that its calculation also takes price trends into account. The Price Volume Trend indicator is similar to the On-Balance Volume (OBV) indicator, as both utilize swing lines.

However, there are subtle differences between the two. The OBV indicator calculates only using the asset’s closing price, while PVT involves the closing price and its percentage change. Therefore, PVT can connect the asset’s price with its Trading Volume, thus showing the equilibrium between supply and demand of the stock.

Traders can use the OBV and price Trading Volume trend indicators in a similar way. The difference is that their accuracy in predicting trends and momentum varies. In most cases, traders will use PVT to find trading signals through crossovers and divergences.

How to calculate the Price Volume Trend (PVT) indicator?

The price volume trend indicator (PVT) can be obtained by multiplying the Trading Volume by the price change of the asset. Then, add the result to the existing cumulative figure. In an uptrend, multiply the Trading Volume by the price increase of the asset. In a downtrend, multiply the Trading Volume by the price decrease. We can summarize this with a formula:

PVT=[(Current Closing Price - Previous Closing Price) / Previous Closing Price] x Trading Volume + Previous PVT

It is worth noting that although this indicator can be used on any time frame, people often calculate PVT on a daily basis.

For example, suppose the trading volume of a certain security is 10,000 and the price change is 0.2%. Multiplying 0.2% by 10,000 gives 20. If the closing price is lower than the opening price, we subtract this amount from the PVT value. If the closing price is higher than the opening price, we add this amount.

Introduction to the Concept of Price Trading Volume Trend Indicator

Essentially, PVT should be consistent with the direction of asset prices, and the magnitude should also be synchronized. This means that the value of PVT should increase as asset prices rise, and vice versa. If prices rise while trading volume decreases, this indicates that the price may reverse.

When the price rises and the PVT value also increases, it indicates that the current upward trend will continue.

When the price declines and the PVT value also decreases simultaneously, it indicates that the current downward trend will continue.

In general, any discrepancy between the price and the PVT value indicates a potential price reversal. Simply put, divergence occurs when the indicator is uncertain about the current price.

Top Divergence: When the price of an asset decreases while its Trading Volume increases, a top divergence occurs.

Bullish Divergence: When the price of an asset rises while its Trading Volume decreases, a bullish divergence occurs. Divergence indicates that a price reversal may happen at any time.

Buy/Sell Signals

Traders can use PVT to identify potential buy and sell points. Traders can determine the support and resistance levels of PVT by observing the past rebound positions of the cryptocurrency. If the indicator reaches a lower support level, it is recommended for traders to open a position. If the indicator reaches a higher resistance level, it is recommended for traders to close a position.

Cross Signal

Traders can use the signal line to determine price trends, as this line is just above the moving average of the PVT, and it can be used to identify entry and exit points for trades. For example, if the PVT line is above the signal line, it is suggested that traders open a position. If the PVT line is below the signal line, it is suggested that traders close their position.

Using PVT in combination with other indicators such as the Relative Strength Index (RSI) can yield more reliable trading signals. For example, many traders use PVT along with the Average Directional Index (ADX) to confirm trading trends. For instance, if the 20-day moving average is above the 50-day moving average and the PVT indicator is in an upward trend, it is recommended that traders start trading.

Similarly, if the 20-day moving average is below the 50-day moving average, and the PVT indicator value is in a downward trend, it is recommended that traders exit their positions, as shown in the figure below:

The advantages of the Price Volume Trend (PVT) indicator

The PVT indicator can better reflect market trends and directions, as its Trading Volume adjusts accordingly to price changes.

In addition, PVT will also show negative and positive changes in price.

Conclusion

PVT is mainly used to measure the relationship between the quantity of assets and their prices. The PVT indicator is an important tool for determining trends and confirming trading signals. At the same time, people can also predict price movements by using divergences.