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It measures the percentage change in the closing price relative to the volume and accumulates it. Its calculation is similar to that of the OBV, but only a part proportional to the actual price change is added (subtracted).
Its formula is as follows:
PVT( t ) = ( (C( t ) - C( t - 1 ) / C( t - 1 ) ) * V( t ) ) + PVT( t - 1 )
where:
PVT( t - 1 ) = value of the PVT of the previous period
C( t ) = current closing
C( t - 1 ) = closing of the previous day
V( t ) = volume of the current day
This operating system makes the volume usable as an operational tool.
