Positive Volume Index

Positive Volume Index Interpretation:

This indicator links the behavior of the volume and price. It can identify a rise in volumes synchronized with a rise in prices. The PVI or Positive Volume Index, detects only the rising signals contrary to the Negative Volume indicator. Less informed investors follow the rise in volumes and are in the market. On the contrary when the volume decrease the more informed investors are in the market. the market is bullish when the two indicators rise above their moving average.

Positive Volume Index Calculation:

If today's volume > yesterday's volume then PVI = yesterday's PVI + (today's close - yesterday's close)/[yesterday's close x yesterday's PVI]

If today's volume yesterday's volume then PVI = yesterday's PVI

Return Positive Volume Index to Using Indicators

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