Positive Volume Index: Updating the Indicator on Higher Volume

Summary

The document gives the calculation rule for the Positive Volume Index (PVI), an indicator that updates according to the relationship between consecutive volume observations. When the current volume is no greater than the preceding observation, the index carries forward unchanged. When volume is higher, the index is adjusted by the percentage change in closing price between those observations. The description says there are no input parameters.

This rule makes PVI responsive to price changes on higher-volume observations while leaving it unchanged on lower or equal volume observations. The page supplies the formula but no rationale for the indicator, trading signals, sample data, or performance evidence. It does not explain initialization, interpretation thresholds, or how to combine PVI with other analysis, so readers should not infer a tested strategy from the calculation alone.

Key ideas

• PVI remains unchanged when volume does not exceed the preceding observation.
• On higher-volume observations, PVI changes in proportion to the closing-price return.
• The indicator is described as having no input parameters.
• The document gives a calculation rule but no signal thresholds or performance evidence.

Tags

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