OPEN-SOURCE SCRIPT
Updated Price Volume Divergence Momentum (PVDM)
Price Volume Divergence Momentum (PVDM)
PVDM is the momentum component of the PVD Ecosystem. It focuses on a simple question: How is price-volume pressure moving right now, and how much of that movement has built up?
The indicator combines two closely related views:
PVD Momentum
The green and red histogram shows the current direction and strength of PVD pressure movement.
• Green = positive pressure movement
• Red = negative pressure movement
• Taller bars = stronger movement
• More solid bars = stronger momentum quality
• More transparent bars = weaker momentum quality
This makes it possible to see not only the direction of momentum, but also how convincing the current movement is.
PVD Pressure Reserve
The blue and orange line shows how much directional pressure movement has accumulated over time.
• Blue = positive pressure reserve
• Orange = negative pressure reserve
• Movement away from zero = pressure is building
• Movement toward zero = accumulated pressure is being released
• Values near the upper or lower range = strongly loaded pressure reserve
A simple way to picture this is a balloon: the histogram shows the pressure currently going in one direction or the other, while the Pressure Reserve shows how strongly the balloon has already been filled in that direction.
Reading both together
When Momentum and Pressure Reserve point in the same direction, the existing pressure is being reinforced.
When they point in opposite directions, the accumulated pressure reserve is being released. This can make changes in market dynamics easier to recognize than by looking at momentum alone.
A highly loaded Pressure Reserve is not automatically a reversal signal. Its value becomes especially interesting when the Momentum histogram begins to change direction or strength.
Calculation Mode
Non-Repainting is the default mode and uses confirmed candle information for a stable view.
Repainting allows the current open candle to update as price and volume develop.
PVDM can be used on different markets and timeframes as an additional view of the pressure behind price movement.
PVDM is the momentum component of the PVD Ecosystem. It focuses on a simple question: How is price-volume pressure moving right now, and how much of that movement has built up?
The indicator combines two closely related views:
PVD Momentum
The green and red histogram shows the current direction and strength of PVD pressure movement.
• Green = positive pressure movement
• Red = negative pressure movement
• Taller bars = stronger movement
• More solid bars = stronger momentum quality
• More transparent bars = weaker momentum quality
This makes it possible to see not only the direction of momentum, but also how convincing the current movement is.
PVD Pressure Reserve
The blue and orange line shows how much directional pressure movement has accumulated over time.
• Blue = positive pressure reserve
• Orange = negative pressure reserve
• Movement away from zero = pressure is building
• Movement toward zero = accumulated pressure is being released
• Values near the upper or lower range = strongly loaded pressure reserve
A simple way to picture this is a balloon: the histogram shows the pressure currently going in one direction or the other, while the Pressure Reserve shows how strongly the balloon has already been filled in that direction.
Reading both together
When Momentum and Pressure Reserve point in the same direction, the existing pressure is being reinforced.
When they point in opposite directions, the accumulated pressure reserve is being released. This can make changes in market dynamics easier to recognize than by looking at momentum alone.
A highly loaded Pressure Reserve is not automatically a reversal signal. Its value becomes especially interesting when the Momentum histogram begins to change direction or strength.
Calculation Mode
Non-Repainting is the default mode and uses confirmed candle information for a stable view.
Repainting allows the current open candle to update as price and volume develop.
PVDM can be used on different markets and timeframes as an additional view of the pressure behind price movement.
Release Notes
Update:Moving averages have been amended for the PVD Momentum histogram and the PVD Pressure Reserve line. Length 0 or 1 disables smoothing and preserves the original appearance. Both MAs affect only the displayed outputs. The underlying PVDM calculations remain unchanged.
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.