OPEN-SOURCE SCRIPT
PVT Trend Channel
The PVT Trend Channel indicator is a trend-following tool based on the Price Volume Trend (PVT). PVT is a cumulative indicator that takes both price movement and trading volume into account — meaning a trend signal is only triggered when price moves with real volume behind it. This makes it significantly more reliable than indicators that rely on price alone.
How It Works
The indicator watches PVT for significant extremes:
Once a trend is confirmed, it stays active until the opposite signal appears. This keeps the indicator stable and prevents it from switching back and forth on every small move. The line is drawn using the actual price highs and lows of the lookback period, so it always reflects real price structure on your chart.
Why Volume Matters
Most trend indicators only look at price. The problem with that is that price can move on low volume — which often leads to false signals. PVT solves this by requiring volume to confirm the move. A bullish signal only fires when price rises and volume supports it. This filters out weak moves and keeps you aligned with trends that have real conviction behind them.
Settings
How It Works
The indicator watches PVT for significant extremes:
- When PVT hits its highest point within the lookback window — bullish trend is confirmed, upper line activates
- When PVT hits its lowest point within the lookback window — bearish trend is confirmed, lower line activates
Once a trend is confirmed, it stays active until the opposite signal appears. This keeps the indicator stable and prevents it from switching back and forth on every small move. The line is drawn using the actual price highs and lows of the lookback period, so it always reflects real price structure on your chart.
Why Volume Matters
Most trend indicators only look at price. The problem with that is that price can move on low volume — which often leads to false signals. PVT solves this by requiring volume to confirm the move. A bullish signal only fires when price rises and volume supports it. This filters out weak moves and keeps you aligned with trends that have real conviction behind them.
Settings
- h — How many bars back the indicator looks to detect a bullish PVT extreme (default: 29)
- l — How many bars back the indicator looks to detect a bearish PVT extreme (default: 25)
Recommended Usage- Best used on the 1D timeframe for clean and reliable trend identification
- Best used alongside other indicators — this tool identifies the trend, but should not be used alone for trade entries
- The two lookback periods are intentionally different — bullish and bearish trends often develop at different speeds, so treating them separately improves accuracy
This indicator does not repaint. All signals are confirmed on bar close.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.