PVI — Positive Volume Index
Overview
The Positive Volume Index tracks price changes exclusively on days when volume increases, reflecting crowd-driven activity and retail sentiment. PVI works in tandem with the NVI to contrast smart-money behaviour with public participation in stock and crypto markets. Explore our indicator guide library for the full suite of volume-based analytical tools.
How It Works
When today's volume exceeds yesterday's: PVI = previous PVI + (percentage price change × previous PVI). When volume decreases, PVI stays unchanged. A 255-day EMA is used as a signal line. PVI rising on high volume reflects crowd enthusiasm and retail participation.
Key Signals
- PVI above its 255-day EMA = crowd is driving prices higher (potential euphoria).
- PVI below its 255-day EMA = crowd sentiment has turned negative.
- NVI bullish while PVI bearish = smart money accumulating while crowd is selling.
Common Mistakes
- Using PVI in isolation — it must be paired with NVI for meaningful analysis.
- Interpreting PVI as a short-term oscillator — it's a long-term regime indicator.
- Relying on PVI in markets with manipulated or fake volume.
More Volume Indicators
EMV — Ease of Movement
Ease of Movement relates price change to volume, showing how easily price is moving — large price change on low volume produces high EMV readings, while small moves on heavy volume produce low readings. It is a unique perspective on market efficiency useful in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a>. Add EMV to your <a href="/strategies" class="text-primary hover:underline">trading strategies</a> alongside other volume tools from our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.
On-Balance Volume (OBV)
On-Balance Volume tracks cumulative buying and selling pressure by adding volume on up days and subtracting volume on down days — it often leads price breakouts by showing institutional accumulation or distribution. OBV divergence is one of the strongest early-warning signals available, especially when confirming <a href="/guides/trade-breakouts" class="text-primary hover:underline">breakout setups</a> in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a>. Pair OBV with the <a href="/academy/indicators/volume-profile" class="text-primary hover:underline">Volume Profile</a> for a complete picture of where institutional money is flowing. Browse our <a href="/academy/indicators" class="text-primary hover:underline">indicators hub</a> to discover more volume-based analysis tools.
VWMA — Volume Weighted Moving Average
The Volume Weighted Moving Average weighs each price bar by its volume before averaging, so high-volume bars have more influence on the average than low-volume bars. VWMA gives traders a truer picture of the "agreed-upon" price compared to a standard <a href="/academy/indicators/simple-moving-average" class="text-primary hover:underline">SMA</a>. It is especially useful in <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a> trading on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a>, and can be explored alongside other volume tools in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.
Volume Profile — Trading with Market Structure
Volume Profile displays the total volume traded at each price level over a specified period, revealing where institutional activity is concentrated and identifying high-probability support/resistance zones. It is a favourite tool of professional traders across <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a>, and works best on a dedicated <a href="/tools/platforms/tradingview" class="text-primary hover:underline">charting platform</a> like TradingView. Combine Volume Profile levels with your existing <a href="/strategies" class="text-primary hover:underline">trading strategies</a> for precision entries at POC, VAH, and VAL. Compare platform features in our <a href="/best/best-charting-platforms" class="text-primary hover:underline">best charting platforms</a> guide to find the right tool for volume analysis.