Price Volume Trend MTF Indicator
Price Volume Trend MTF (PVT) MT4 Indicator helps in determining the price direction and the strength of the price change for trend, intraday, and long-term trading.
Description
The Price Volume Trend MTF (PVT) Forex indicator for MT4 for is one of the best forex technical indicators for trend traders, intraday traders as well as long-term traders.
The indicator helps in determining the price direction and the strength of the price change. In so doing, it helps show the balance between the supply and demand of an asset.
How it works
The Price Volume Trend MTF (PVT) draws two continuous lines on a separate chart below the main chart. One of the lines is lime and the other line is red.
The lime line shows the cumulative volume and it adds or subtracts the multiple of the percentage change of the price of an asset. On the other hand, the red line shows the trend.
The lime line, therefore, shows the force behind a particular trend.
Interpreting Price Volume Trend MTF MT4 Indicator signals
To use the Price Volume Trend MTF MT4 Indicator, a trader must look for a crossover between the two lines (the red and the lime line).
When the lime line crosses over the red line and the red line is moving upwards, it indicates that there is a bullish trend and the strength of the bullish trend is strong.
On the other hand, when the lime line crosses below the red line and the red line is moving downwards, it indicates that there is a bearish trend and the strength of the bearish trend is strong.
Therefore, to place a buy order a trader should ensure that the lime line has crossed above the red line. To place a sell order a trader should ensure that the lime line has crossed below the red line.
Conclusion
Price Volume Trend MTF MT4 Indicator is a simple to use forex technical indicator that traders both beginners and experts can use to determine the market trend and the strength of the trend to determine what type of trade to open.
The indicator can either be used on its own or in combination with other technical indicators depending on the trading strategy that a trader uses.