Indicator - Positive Volume Index
- 874
- 0
- 0
Definition Positive Volume Index
If today's Volume > yesterday's volume then PVI = yesterday's PVI + (today's close - yesterday's close)/[yesterday's close × yesterday's PVI]
If today's volume < yesterday's volume then PVI = yesterday's PVI
Interpretation Positive Volume Index
This indicator links the behaviour of 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 volume decrease the more informed investors are in the market.
The market is bullish when the two indicators rise above their moving averages
