Which of the following indicators applies volume to daily percentage price change?

The Price and Volume Trend (PVT) indicator is designed to relate price movements to volume changes. It provides a way to measure the cumulative effect of price changes in conjunction with volume, effectively applying volume to daily percentage price changes.

PVT is calculated by taking the previous period's PVT, adding the percentage price change of the current period, and then multiplying that by the current period's volume. This calculation allows traders to see how much volume is supporting price changes over time, helping identify trends and potential reversals. The integration of volume into the calculation helps clarify whether price moves are being supported by strong trading activity or if they are occurring on low volume, which might suggest a lack of conviction in the move.

Understanding this methodology is crucial for technical analysts, as it provides insights into market strength and potential future movements based on the relationship between volume and price change. This distinction is what makes the Price and Volume Trend the correct choice in the context of applying volume to daily percentage price change.