OPEN-SOURCE SCRIPT
Price Volume Divergence State (PVDS)
Price Volume Divergence State (PVDS)
PVDS is part of the PVD Ecosystem. It is designed to answer one simple question:
What phase is the current price-volume process in?
Price and volume do not always develop together. Pressure can build before price reacts, stored pressure can begin to move into price, an established move can remain well supported, or the underlying process can start to weaken while price is still moving.
PVDS turns these relationships into six simple states:
BUILDING — directional pressure is building while price has not yet fully expressed it.
RELEASING — previously stored pressure is increasingly being expressed through price.
ACTIVE — pressure and price are working together in an established direction.
WEAKENING — the current process is losing underlying support.
TRANSITION — the process is changing and has not yet settled into a clear state.
NEUTRAL — there is currently no clear price-volume process.
Reading the indicator
• Green above zero represents an upward process.
• Red below zero represents a downward process.
• The distance from zero shows how established the directional process is.
• Brighter dots indicate a clearer reading.
• Larger dots show a stronger release of stored pressure into price.
The small information panel gives the current state in plain language and also shows its development, activity and clarity.
How PVDS can help
PVDS is especially interesting when viewed together with the price chart. BUILDING can reveal pressure developing while price is still relatively quiet. RELEASING can show when stored pressure is becoming visible in price. WEAKENING can highlight that the process behind an ongoing price move is beginning to lose support.
This makes PVDS useful for understanding what is happening underneath the visible price movement, rather than looking at price alone.
Within the PVD Ecosystem, PVDS has the specific role of translating the underlying price-volume relationship into an easy-to-read market process state. It can be used on its own as additional context for chart analysis or together with the other PVD tools for a broader view of market behavior.
PVDS is part of the PVD Ecosystem. It is designed to answer one simple question:
What phase is the current price-volume process in?
Price and volume do not always develop together. Pressure can build before price reacts, stored pressure can begin to move into price, an established move can remain well supported, or the underlying process can start to weaken while price is still moving.
PVDS turns these relationships into six simple states:
BUILDING — directional pressure is building while price has not yet fully expressed it.
RELEASING — previously stored pressure is increasingly being expressed through price.
ACTIVE — pressure and price are working together in an established direction.
WEAKENING — the current process is losing underlying support.
TRANSITION — the process is changing and has not yet settled into a clear state.
NEUTRAL — there is currently no clear price-volume process.
Reading the indicator
• Green above zero represents an upward process.
• Red below zero represents a downward process.
• The distance from zero shows how established the directional process is.
• Brighter dots indicate a clearer reading.
• Larger dots show a stronger release of stored pressure into price.
The small information panel gives the current state in plain language and also shows its development, activity and clarity.
How PVDS can help
PVDS is especially interesting when viewed together with the price chart. BUILDING can reveal pressure developing while price is still relatively quiet. RELEASING can show when stored pressure is becoming visible in price. WEAKENING can highlight that the process behind an ongoing price move is beginning to lose support.
This makes PVDS useful for understanding what is happening underneath the visible price movement, rather than looking at price alone.
Within the PVD Ecosystem, PVDS has the specific role of translating the underlying price-volume relationship into an easy-to-read market process state. It can be used on its own as additional context for chart analysis or together with the other PVD tools for a broader view of market behavior.
Open-source script
In true PulseWire 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 PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire 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 PulseWire. Read more in the Terms of Use.