LinkedInwithBackgroundTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhatIsthePositiveVolumeIndex(PVI)?Thepositivevolumeindex(PVI)isanindicatorusedintechnicalanalysisthatprovidessignalsforpricechangesbasedonpositiveincreasesintradingvolume.APVIcanbecalculatedforpopularmarketindexes.Itcanalsobeusedtoanalyzemovementsinindividualsecurities.ThePVIhelpsinassessingtrendstrengthandpotentiallyconfirmingpricereversals.ImagebySabrinaJiang©Investopedia 2021KeyTakeawaysThepositivevolumeindex(PVI)isbasedonpricemovesdependingonwhetherthecurrentvolumeishigherthanthepreviousperiod.Ifvolumedoesn'tincreasefromoneperiodtothenext,thePVIstaysthesame.ThePVIisoftenshownasamovingaverage(tohelpsmoothoutitsmovements)andcomparedtoaone-yearaverage(255days).Traderswatchtherelationshipofanine-periodPVImovingaverage(orotherMAlength)relativetothe255-periodPVImovingaverage.WhenthePVIisabovetheone-yearaverageithelpsconfirmapricerise.WhenthePVIdropsbelowtheone-yearaverageithelpsconfirmapricedrop.TheFormulaforthePositiveVolumeIndexIs:PVI=PPVI+(TCP−YCP)YCP×PPVIwhere:PVI=positive volume indexPPVI=previous positive volume indexTCP=today’s closing priceYCP=yesterday’s closing price\begin{aligned}&\text{PVI}=PPVI+\frac{(TCP-YCP)}{YCP}\timesPPVI\\&\textbf{where:}\\&PVI=\text{positivevolumeindex}\\&PPVI=\text{previouspositivevolumeindex}\\&TCP=\text{today'sclosingprice}\\&YCP=\text{yesterday'sclosingprice}\\\end{aligned}​PVI=PPVI+YCP(TCP−YCP)​×PPVIwhere:PVI=positive volume indexPPVI=previous positive volume indexTCP=today’s closing priceYCP=yesterday’s closing price​Ifvolumetodayislessthanorequaltovolumeyesterday:PVI=Previous PVIPVI=\text{PreviousPVI}PVI=Previous PVIHowtoCalculatethePositiveVolumeIndexIfvolumetodayisgreaterthanvolumeyesterday,thenusethePVIformula.Inputpricedatafortodayandyesterday,alongwiththepreviousPVIcalculation.IfthereisnopreviousPVIcalculationthenusethepricecalculationfromtodaya