134 Price Volume (pvol)

Returns a series of the product of price and volume. The volume price trend indicator is used to determine the balance between a security’s demand and supply. The percentage change in the share price trend shows the relative supply or demand of a particular security, while volume indicates the force behind the trend. The VPT indicator is similar to the on-balance volume (OBV) indicator in that it measures cumulative volume and provides traders with information about a security’s money flow.

The smoothed version appear to provide better signals.

Figure 13.27: Price Volume