Abbreviation: PosVolIndex: Raw
Category: Volume
Input Parameters:
| Name | Range | Default |
| Closing Price | Close | |
| Volume | Volume | |
Calculation:
if ( Volume > Previous Volume ) then equals (Close – Previous Close) / Previous Close
otherwise equals zero
Discussion:
Provides a measure of market direction relative to price level for periods of increasing volume. The indicator is based upon the theory that the buying and selling of smart investors occurs on quiet, declining volume days while the buying and selling of unsophisticated investors occurs on dramatic, increasing volume days. Using this theory, the Positive Volume Index should indicate the actions of the unsophisticated investors.