The Underground Secrets of Price Volume Trend (PVT) in USD/CHF Trading

Why the Price Volume Trend (PVT) is the Hidden Weapon of Smart Traders

Let’s face it—trading the USD/CHF pair can sometimes feel like playing chess against a computer set to ‘nightmare mode.’ The Swiss Franc is notorious for its safe-haven appeal, while the U.S. Dollar swings between global confidence and economic chaos. Most traders focus on basic indicators, but price volume trend (PVT) remains an underappreciated gem that separates the amateurs from the pros.

You’re about to uncover:

• How PVT exposes hidden momentum shifts before price movements become obvious.
• Why most traders misread USD/CHF price action—and how you can get ahead.
• A proven ninja tactic to predict USD/CHF trend reversals with near-surgical precision.

Let’s dig in.

The “Invisible Hand” That Moves USD/CHF: What is the Price Volume Trend (PVT)?

PVT is a cumulative volume-based indicator that adjusts based on price movements. It’s like a lie detector for the market—showing whether price trends are backed by real volume or just empty hype.

Unlike the classic On-Balance Volume (OBV), which blindly adds volume based on closing prices, PVT accounts for proportional price changes, making it more dynamic and responsive.

Formula Breakdown:

PVT = Previous PVT + [Volume * (Close Price % Change)]

Translation? When prices move up with high volume, PVT spikes aggressively—a strong bullish signal. When prices rise on low volume, it warns of a weak rally destined to collapse faster than a Ponzi scheme.

Most Traders Get USD/CHF Trends Completely Wrong—Here’s Why

Picture this: A trader sees USD/CHF rising and piles into a buy trade, expecting the trend to continue. A few hours later, the price reverses hard, stopping them out. What went wrong?

The Classic Mistake: Ignoring Volume Confirmation

Many traders only look at price movement without confirming whether volume supports the trend. PVT filters out weak breakouts and false signals, keeping you from falling for market traps.

Here’s a game-changing insight:

• If USD/CHF moves up, but PVT lags or trends downward → Weak rally (Expect Reversal)
• If USD/CHF moves down, but PVT rises → Bear Trap (Potential Buy Signal)

Example:

• In March 2024, USD/CHF broke above 0.90, but PVT showed declining volume. A few days later, price collapsed back below 0.89—a textbook false breakout. Traders who followed PVT saw the trap early and avoided losses.

The Ninja Strategy: How to Use PVT to Trade USD/CHF Like a Pro

Now, let’s put PVT to work with a step-by-step trading setup that gives you a serious edge.

Step 1: Identify Divergences

• Open your USD/CHF chart and apply PVT.
• Look for divergences between price and PVT:
  • Price making higher highs but PVT making lower highs? (Bearish Reversal)
  • Price making lower lows but PVT making higher lows? (Bullish Reversal)

Step 2: Confirm with a Secondary Indicator

• Combine PVT with Relative Strength Index (RSI) or MACD to double-confirm signals.
• Example: If PVT shows a bearish divergence and RSI crosses below 50, the probability of a reversal skyrockets.

Step 3: Execute with Precision

• For short trades: Sell USD/CHF when PVT diverges bearish, volume dries up, and price breaks support.
• For long trades: Buy USD/CHF when PVT diverges bullish, confirming momentum strength.

Step 4: Manage Risk Like a Hedge Fund

• Stop-loss: Place stops beyond the last major high/low.
• Target: Aim for at least a 1:2 risk-reward ratio.
• Monitor: If PVT reverses unexpectedly, cut losses early.

Expert Opinions: Why PVT Works (Even When Other Indicators Fail)

According to John Murphy, renowned technical analyst and author of Technical Analysis of the Financial Markets, “Volume precedes price. If a trend lacks volume confirmation, it is unlikely to sustain.”

Similarly, Ray Dalio, billionaire hedge fund manager, emphasizes that “Price and volume trends expose market psychology better than any indicator.”

Advanced Insights: How Institutional Traders Use PVT for USD/CHF

Banks and hedge funds manipulate price action, but their moves leave volume footprints. By tracking PVT, you can spot their entry and exit points before the general market catches on.

Pro Tip:

• If PVT spikes on a range breakout, institutions are loading up. Ride the wave.
• If PVT remains flat on a breakout, institutions aren’t backing it. Avoid the trap.

Final Takeaways: How to Trade USD/CHF Smarter Than 90% of Traders

By using Price Volume Trend (PVT), you’ll:

✅ Spot fake breakouts before they trap you.

✅ Confirm trends before committing your capital.

✅ Trade USD/CHF with an insider’s edge, using volume-backed data.

Want to elevate your trading further? Check out these advanced tools and insights:

• Live Forex News Updates – Stay ahead of market-moving events.
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Image Credits: Cover image at the top is AI-generated