The Hidden Edge: How the Price Volume Trend (PVT) Can Revolutionize Your Day Trading
Why Most Traders Get It Wrong (And How You Can Avoid It)
Imagine this: You’re deep into a trade, everything looks good, but suddenly—BAM!—the price takes a nosedive. You’re left wondering, What just happened? If this scenario feels painfully familiar, you’re not alone. Most traders focus solely on price action and completely ignore one of the most crucial elements of the market—volume.
Enter the Price Volume Trend (PVT), a next-level indicator that reveals hidden momentum and market sentiment long before price alone gives any clues. If you’re not using PVT in your day trading strategy, you might as well be driving a car with no dashboard.
The Secret Sauce: What is the Price Volume Trend (PVT)?
Think of PVT as your market’s mood detector. It’s like watching people at an auction—if more people are raising their paddles (volume), the price is more likely to keep climbing. The PVT formula calculates the cumulative volume flow relative to price movements, giving you a crystal-clear picture of whether buyers or sellers are truly in control.
The PVT Formula (Don’t Worry, It’s Not Rocket Science)
PVT = Previous PVT + [(Close Price – Previous Close Price) / Previous Close Price] * Volume
This formula helps traders measure money flow and market strength—two things that separate amateur traders from professionals.
How to Use PVT for Day Trading Like a Pro
1. Spotting Breakouts Before They Happen
Ever been late to a breakout? By the time you enter, the move is over, and you’re stuck with crumbs. PVT eliminates this problem by detecting early accumulation—when smart money is loading up before the crowd catches on.
✅ Pro Tip: If price is consolidating but PVT is trending upward, expect an imminent breakout. That’s your green light to prepare an entry.
2. Confirming Trend Strength (No More False Signals!)
Price may rise, but is it backed by strong volume? If not, that move is as weak as a one-legged stool. PVT ensures that price action isn’t lying to you.
✅ Pro Tip: If price is increasing but PVT is flat or declining, the rally might be a trap. Look for volume confirmation before pulling the trigger.
3. Spotting Divergences (A Ninja-Level Trick)
Divergences are the bread and butter of elite traders. If price is making higher highs, but PVT is making lower highs, that’s a sign the move is running out of steam.
✅ Pro Tip: Bearish Divergence: Price up, PVT down = Time to prepare for a reversal.
✅ Bullish Divergence: Price down, PVT up = Possible bottom and reversal incoming.
4. Using PVT for Entries & Exits
The best traders don’t just enter a trade—they know when to exit. If PVT starts flattening or reversing while price is still climbing, it’s a sign that momentum is fading.
✅ Pro Tip: Pair PVT with support/resistance levels for precision entries and exits.
Case Study: How PVT Nailed a Trade Before the Crowd
In October 2023, the EUR/USD was trading sideways, confusing retail traders. However, PVT started climbing steadily before the price moved, indicating quiet accumulation. A week later, the pair exploded upwards by 250 pips. Those watching only price action were late to the move, while PVT traders entered early and banked big.
Common PVT Myths (And Why They’re Dead Wrong)
???? “PVT is just another volume indicator.” Nope. Unlike standard volume, PVT adjusts volume based on price movement, filtering out noise and false signals.
???? “PVT doesn’t work on low liquidity markets.” Wrong again. It actually works best in forex, where volume transparency is a challenge.
???? “Only advanced traders can use it.” Not true! If you can read a line graph, you can use PVT.
Level Up Your Trading With These Tools
Want to take your PVT game even further? Here are some essential resources:
✅ Latest Economic Indicators & Forex News – Stay ahead of market-moving events.
✅ Forex Education – Master advanced methodologies.
✅ Trading Community – Get real-time insights and expert analysis.
✅ Free Trading Journal – Track performance and refine your strategy.
Final Thoughts: Why PVT Could Be Your Missing Piece
Trading without PVT is like trying to navigate without GPS. It helps you anticipate moves, avoid traps, and ride trends with confidence. Whether you’re a beginner or an advanced trader, integrating PVT into your strategy can sharpen your edge and boost your profits.
So, are you ready to start trading smarter? Drop a comment below and let’s discuss how you’re using PVT in your trading!
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Image Credits: Cover image at the top is AI-generated
PLEASE NOTE: This is not trading advice. It is educational content. Markets are influenced by numerous factors, and their reactions can vary each time.

Anne Durrell & Mo
About the Author
Anne Durrell (aka Anne Abouzeid), a former teacher, has a unique talent for transforming complex Forex concepts into something easy, accessible, and even fun. With a blend of humor and in-depth market insight, Anne makes learning about Forex both enlightening and entertaining. She began her trading journey alongside her husband, Mohamed Abouzeid, and they have now been trading full-time for over 12 years.
Anne loves writing and sharing her expertise. For those new to trading, she provides a variety of free forex courses on StarseedFX. If you enjoy the content and want to support her work, consider joining The StarseedFX Community, where you will get daily market insights and trading alerts.
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