Percentage Volume Oscillator for Measuring Volume Momentum

Summary

The Percentage Volume Oscillator (PVO) compares a fast and a slow moving average of tick volume to describe changes in volume momentum. The indicator can display its main line, a signal line, and a histogram, with configurable periods and moving-average methods. In relative mode, the difference between the fast and slow averages is scaled by the slow average; in absolute mode, it is their raw difference.

A signal line is calculated as a moving average of the PVO, and the histogram is the gap between the PVO and that signal. These components provide a way to inspect shifts in volume activity, but the document does not define trading rules, thresholds, or performance evidence. Results depend on the selected periods, averaging methods, and calculation mode, and the input is tick volume rather than an explanation of exchange-traded volume.

Key ideas

• PVO measures the difference between fast and slow moving averages of tick volume.\nRelative mode scales that difference by the slow average, while absolute mode leaves it unscaled.\nA signal line smooths PVO, and the histogram shows the distance between PVO and its signal.\nThe indicator has configurable periods, averaging methods, and display options.\nThe document provides no entry rules or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.