As adjusted cumulative total of volume, the Price and Volume Trend is similar to On Balance Volume. But where OBV adds all volume on days when prices close higher and subtracts all volume on days when prices close lower, 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. Recall 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 had, 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 tlarge changes in the price.

The Price and Volume Trend is calculated:

[

(

Close - Yesterday's Close Yesterday's Close

*

Volume

)

+Yesterday's PVT

]