The live graphics display applied technical analysis and refers to the volume indicators for binary options. It is calculated as a percentage, and shows how to change the volume of transactions compared to the previous period. Trends Indicator Price and volume It can be used to confirm the direction of the trend and its strength.
If you compare this Binary Options Indicator indicator Balance the volume of, It is worth noting its greater accuracy. On the live chart, it appears in a separate window, looks like a curve. PVT indicator can be configured on your own. Calculation of data is done automatically.
If we talk about the assets that can be analyzed using PVT indicatorThen you will get the best result according to the stock market. Data on the volume of purchases of securities shall be published in the public domain. But on transactions in the foreign exchange market data only relative.
Now it must be said about the SignalsThat we can see on the chart, analyzing trends indicator prices and volumes.
- If the trend is upward asset indicator PVT is also growing - hence the strength of the trend is confirmed and you can open an option to increase;
- If the downward trend in asset indicator drops too PVT - means the power of the trend can be confirmed by the option open on the decline;
- Ate the trend and indicator do not match, you should refrain from buying an option, since it speaks of the uncertainty in the market;
- If you see that the indicator has the highest numerical value, then the asset entered the overbought zone, and there is a possibility of a trend reversal in the opposite direction;
- If you see that the indicator has a negative numerical value, then the asset entered the oversold zone, and there is a possibility of a trend reversal in the opposite direction.
Beginners will not have any problems with its setting, as there is absolutely nothing to tune in it. You can make changes only in the appearance of the indicator on the chart. All parameters remain the default.
It is not recommended to use it yourself, PVT still shows much better results when working in combination with other technical tools. Behaves well with oscillatory indicators.
Its advantages include the fact that the indicator of the trend of price and volume is capable of generating quite clear signals. It calculates only a small part of the volume for a short period of change in value.
But, unfortunately, this indicator is capable of generating a large number of false signals. Therefore, it is recommended to use it only in a pair with other, preferably oscillators.
In general, Price Volume Trend is easy to read. When its moving is growing, an uptrend prevails in the market and you should open a purchase transaction. And when it falls, then you need to trade for a fall.
Some traders also complement this technical tool with a simple moving average. It helps a lot when market analysis seems too complicated and price moves erratically and unpredictably.
There are also strategies in which traders draw support and resistance lines to filter out false signals from the Price Volume Trend indicator.
Like most oscillators, one of the strong signals is divergence. Its essence is no different from other indicators: the price on the chart increases, and the indicator’s moving drops and vice versa. The emergence of such a situation in the market suggests that a price reversal will occur soon, and the price will begin to move in the direction that the Price Volume Trend indicator is predicting.