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This page contains the formula for Positive Volume Index and you can download the formula in Excel spreadsheet.

Positive Volume Index

Positive Volume Index is an index that focuses on days where the volume has significantly increased from the previous days's trading. This is based on the theory that the "uninformed crowd" trades predominantly on days that the volumes are increasing.

Formula:

If today's volume is greater than yesterday's volume
PVI = Yesterday's PVI + ((( TC - YC) / YC ) * Yesterday's PVI )
If today's volume is greater than yesterday's volume
PVI = yesterday's PVI
If today's volume equals yesterday's volume
PVI = yesterday's PVI

TC = Today's close, YC = Yesterday's close

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