Summary, MPVT

• Formula, MPVT_i = exp[MPVT_i-1 + V_i*(Pi-P_i-1)/P_i-1],

• For plotting, MPVT(plotted) = level + scale*MPVT. Choose level & scale to match at two points on price plot, then observe behavior subsequently.

• Read as a divergent indicator, expecting price to eventually close the divergence.

• MPVT cannot predict timing of closure of divergence.

• A volume spike creates a first order discontinuity.

• A change in average volume creates a second order discontinuity.

• Level & scale are different across a discontinuity, and divergences canít be read across them.