The Price Volume Trend indicator reveals price trends as well as volume. It works similarly to the standard On Balance Volume (OBV) forex indicator mt5.
The amount of the volume that needs to be added to the current value is determined by the weight of the chart price change (spike or drop) relative to the previous day’s close price.
The indicator is displayed in a separate window below the main mt5 trading chart.
It fits all of the mt5 timeframes and forex currency pairs.
The default mt5 indicator settings can be modified directly from the indicator input tab. Feel free to experiment with the settings and parameters to fit your preferences.
The formula for the Price Volume Trend mt5 forex indicator:
The calculations of the Price Volume Trend mt5 forex indicator are based on the below formula:
PVT = ((Close – Close(-1)) / Close(-1)) * TickVolume + PVT(-1)
Analysis of forex indicator values is comparable to average On Balance Volume and Accumulation/Distribution (AD).
How to use the Price Volume Trend mt5 forex indicator:
When the crimson line of the PVT forex indicator continues to increase, volume is said to be on the increase. It does not mean a bullish chart signal but rather an increased volume of preferred direction (upward or downward) that another technical analysis gauge should confirm. When the crimson line of the PVT falls, the volume also decreases, and a potential reversal is underway.
We do not recommend using that as a standalone forex trading tool. Instead, use it in conjunction with some other technical analysis forex indicators.
How to set up the Price Volume Trend indicator in MT5?
Installation Guide
Copy and paste the PVT.mq5 or PVT.ex5 indicator files into the MQL5 folder of the MetaTrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator, find the gauge name, right-click it, and select Attach to the chart.
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Bottom Line
The Price Volume Trend indicator is worth adding to your trading collection but remember to have realistic expectations. Like any other technical analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your trading system based on it.
