The Underground Guide to Using Price Volume Trend for EURJPY Trades

The Forex market is like a high-stakes poker game: the players with the most information—and the ability to read between the lines—win big. But what if I told you there’s a hidden metric that most traders overlook? Enter the Price Volume Trend (PVT), a little-known but powerful indicator that could be your secret weapon when trading EURJPY.

The Hidden Formula Only Experts Use

PVT is like that underrated supporting character in a TV show—the one who steals the scene but doesn’t get enough credit. Unlike typical volume-based indicators, PVT doesn’t reset with each bar but accumulates values over time. This makes it particularly useful for spotting divergences and market trends that retail traders often miss.

Here’s why you should care:

• It confirms trends: When price and PVT move together, the trend has strong backing.
• It exposes fake breakouts: When price moves up but PVT doesn’t follow, beware—institutions might be setting a trap.
• It predicts reversals: If PVT diverges from price, a correction is likely around the corner.

Let’s get into the nitty-gritty of how you can use this tool to gain an edge in EURJPY trading.

Why Most Traders Get It Wrong (And How You Can Avoid It)

Most traders rely solely on price action or RSI, MACD, and moving averages. Don’t get me wrong, these are great tools, but they only tell half the story. Volume is the missing piece, and PVT gives us a unique way to read it.

Consider this scenario:

• EURJPY is in an uptrend, but PVT is flat.
• You get excited and enter a long position.
• The next day, the price reverses violently.

Sound familiar? That’s because the uptrend wasn’t backed by strong volume. The market makers were probably offloading positions, and without PVT, you had no idea.

How to Predict EURJPY Market Moves Like a Pro

To use PVT effectively, follow these steps:

1. Identify Divergences

• If EURJPY makes higher highs, but PVT does not, it’s a warning sign of weak momentum.
• If EURJPY makes lower lows, but PVT stays flat or rises, a bullish reversal is brewing.

2. Use PVT with Key Levels

• Draw support and resistance levels on the EURJPY chart.
• If price breaks a resistance level but PVT doesn’t confirm, the breakout is likely fake.
• If PVT surges along with price, you’re looking at a strong breakout.

3. Pair PVT with Volume Profile

• Look at the volume nodes around key levels.
• If PVT rises near a volume cluster, it signals strong institutional interest.
• If price rises but volume is weak, it’s probably a retail-driven move—which is risky to follow.

Case Study: EURJPY’s Recent Fake-Out

Let’s analyze a recent event where traders got caught on the wrong side.

• In December, EURJPY broke past 160.00, triggering retail FOMO (fear of missing out).
• PVT, however, stayed stagnant, signaling weak conviction.
• Within two days, the price plummeted back to 157.50, liquidating late buyers.

Had traders paid attention to PVT, they could have saved themselves a costly mistake.

The Forgotten Strategy That Outsmarted the Pros

One overlooked method is using PVT on multiple timeframes.

• If PVT is rising on the daily chart but stagnant on the 4-hour chart, wait for confirmation.
• If PVT aligns across multiple timeframes, the trend is truly strong.

Insider Tactics: How to Use PVT Like an Institutional Trader

Big players don’t chase trades. Instead, they:

1. Watch for low PVT on rallies to detect distribution phases.
2. Enter on PVT-supported dips when liquidity is high.
3. Exit when PVT diverges from the trend, signaling momentum loss.

Final Takeaways: Your EURJPY Trading Cheat Sheet

• PVT confirms true trends—don’t trust price alone.
• Divergences warn of reversals—act accordingly.
• Pair PVT with volume clusters for higher accuracy.
• Multi-timeframe analysis helps validate trends.

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Mastering PVT in EURJPY can be your competitive edge. Will you use it, or let the big players outsmart you again?

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Image Credits: Cover image at the top is AI-generated