PositiveVolumeIndexGive the positive volume index value, also known as PVI technical indicator of selected price. Near volumes informations of the instrument.
Syntax:
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PositiveVolumeIndex(price) |
Calculation :
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.
Intepretation :
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.
Example:
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i1 = PositiveVolumeIndex(close) if(i1>i1[1] OR i1=i1[1]) THEN result = lowest[5](low) - range ELSE result = highest[5](high) + range ENDIF RETURN result |
