Positive Volume Index (PVI)

The positive volume index is a momentum indicator that focuses on days when volume increases. It assumes that informed traders are more active on higher volume days.

Calculation

• If volume is higher than the previous day, update the PVI by the percentage price change.
• If volume is lower, PVI remains unchanged.

Interpretation

A rising PVI suggests accumulation on higher volume days. Traders often compare the PVI to a moving average to identify trend direction.

Example

Price rises on days of increasing volume, causing the PVI to trend upward. A trader sees this as confirmation of bullish participation.

Practical notes

PVI is usually paired with the negative volume index for a more complete view of volume behavior.