The Price Volume Trend Oscillator (PVTO) is a powerful technical analysis tool designed to provide insights into the relationship between price movements and trading volumes. This indicator offers a unique perspective on market trends, helping traders identify potential buying and selling opportunities.
Parameters:
- EMA Short Period: Defines the short EMA period for calculating the PVTO. Default 3
- EMA Long Period: Specifies the long EMA period for PVTO calculation. Default 10
- EMA Signal Period: Sets the EMA period for the signal line. Default 12
- Normalization Look-Back Period: Determines the period for normalizing the PVTO value. Default 25
Mathematical Formulas:
PVT = PVT_prev + (Volume × ((Close - Close_prev) / Close_prev)) Where PVT - Price Volume Trend, PVT_prev - Price Volume Trend of Previous Bar
Raw PVT = EMA(PVT, Short EMA Period) - EMA(PVT, Long EMA Period)
MaxAbs = Maximum Absolute Value of Raw PVT within Normalization Look-Back Period
PVT Oscillator = Raw PVT / MaxAbs
PVT Signal = EMA( PVT Oscillator, EMA Signal Period)Usage Tips:
- Use the Custom PVTO in combination with other technical analysis tools for comprehensive market analysis.
- Consider the oscillator's interaction with the signal line for additional confirmation of trend changes.
- Experiment with different parameter settings to find the configuration that best suits your trading strategy.
Usage Tips in MQL Programming:
Use iCustom with input parameters. Buffer 0 - PVT Oscillator, Buffer 1 - PVT Oscillator Signal
Risk Warning: Trading involves significant risk and may not be suitable for all investors. Always conduct thorough analysis and use risk management techniques when making trading decisions.
Screenshots: On the screenshots below shows price volume trend oscillator for GBPUSD M15 time frame. It is used find divergence with help other indicator (ZigZag MT4, EMA Period 20).
