How to read the
#PVT indicators?
The key isn't the numbers; it's the direction.
Many people see numbers like 1.2K, 850, -320 pop up on PVT and think those are buy/sell signals.
But that's not the case; these are just the 'current cumulative values' of PVT.
What's really important isn't what it is right now,
but whether it's trending upwards or downwards next.
If PVT is moving up, it means buying pressure is getting stronger.
If PVT is moving down, it means selling pressure is getting stronger.
If PVT is flat, it means there's no clear direction in volume.
I personally use PVT most often to check if a 'breakout is real or not.'
If the price hits a new high but PVT doesn't follow suit,
you need to be cautious of a false breakout, which could just be a pump.
If the price hits a new low but PVT doesn't break lower,
it indicates that selling pressure might be weakening, and there could be buyers stepping in below.
So, PVT isn't suitable for opening positions on its own;
it's better used as a volume-price confirmation tool.
In short:
A price breakout is just surface-level;
PVT needs to keep up for it to look like there's actually someone pushing it.
#PVT $BTC