|The Price and Volume Trend ("PVT") is similar to On Balance Volume ("OBV,") in
that it is a cumulative total of volume that is adjusted depending on changes in closing
prices. But where OBV adds all volume on days when prices close higher and subtracts all
volume on days when prices close lower, the PVT adds/subtracts only a portion of the daily
volume. The amount of volume added to the PVT is determined by the amount that prices rose
or fell relative to the previous days close.
The PVT is calculated by multiplying the
days volume by the percent that the securitys price changed, and adding this
value to a cumulative total.
For example, if the securitys price increased 0.5% on volume of 10,000 shares, we
would add 50 (i.e., 0.005 * 10,000) to the PVT. If the securitys price had closed
down 0.5%, we would have subtracted 50 from the PVT.