DEFINITION of 'Positive Volume Index  PVI'
An indicator used in technical analysis that is based on days where trading volume has significantly increased from the previous day. The Positive Volume Index (PVI) assumes that uninformed investors dominate the action on days with substantial trading volume, while the "smart money"  consisting of institutions, funds and professional traders  is more active on relatively quiet days with belowaverage trading volume.
As the PVI only takes into consideration days when trading volume is higher compared with the previous period, if the PVI is up, it implies that price is appreciating on rising volume, while a lower PVI implies that price is declining on rising volume. Technicians believe the PVI is better at identifying bear markets than bull markets. PVI can be calculated on a daily or weekly basis.
INVESTOPEDIA EXPLAINS 'Positive Volume Index  PVI'
The PVI and the Negative Volume Index (NVI) are together known as price accumulation volume indicators. They were first developed in the 1930s by Paul L. Dysart, who used market breadth indicators such as the advancedecline line to generate the PVI and NVI. The indicators gained popularity following their inclusion in a 1976 book titled "Stock Market Logic" by Norman Fosback, who expanded their application to individual securities.
Fosback's research, which encompassed the period from 1941 to 1975, suggested that when the PVI is trending above its oneyear average, the probability of the market being in a bullish phase is 79%. When the PVI is trending below its oneyear average, the probability of a bear market is 67%.
Calculation of the PVI depends on how current volume compares with the previous day's trading volume. If current volume is greater than the previous day's volume, PVI = Previous PVI + {[(Today's Closing PriceYesterday's Closing Price)/Yesterday's Closing Price)] x Previous PVI}. If current volume is lower than the previous day's volume, PVI is unchanged.

Negative Volume Index  NVI
A technical indicator that relies on changes in a security’s ... 
Index
A statistical measure of change in an economy or a securities ... 
Volume
The number of shares or contracts traded in a security or an ... 
Trade
A basic economic concept that involves multiple parties participating ... 
Volume Of Trade
The total quantity of futures contracts bought and sold during ... 
Up Volume
A stock volume that closes at a price higher than the previous ...

Technical Indicators
What are the best technical indicators to complement the Positive Volume Index (PVI)?
Discover several of the best technical indicators that traders and market analysts use in conjunction with the Positive Volume Index, or PVI. 
Technical Indicators
What is the Positive Volume Index (PVI) formula and how is it calculated?
Understand how traders and analysts use the Positive Volume Index indicator, the theory behind it and the formula used to calculate it. 
Technical Indicators
Why is the Positive Volume Index (PVI) important for traders and analysts?
Take a closer look at the positive volume index, which is a technical price volume indicator used to identify possible bear markets. 
Trading Strategies
What is the Negative Volume Index (NVI) formula and how is it calculated?
Read about the Negative Volume Index, or NVI, a momentum indicator experiencing serious modifications since its introduction in the 1930s. 
Trading Strategies
Why is the Negative Volume Index (NVI) important for traders and analysts?
Dive into the theory and history of the Negative Volume Index (NVI), a volumebased indicator used to identify and qualify stock market trends. 
Technical Indicators
Simple Moving Averages And Volume RateofChange
We teach you how to confirm buy and sell signals by comparing two very simple indicators. 
Active Trading Fundamentals
Identifying Market Trends
The success or failure of your long and shortterm investing depends on recognizing the direction of the market. 
Active Trading Fundamentals
Using Volume Rate Of Change To Confirm Trends
Wise traders rely on indicators that show a trend in volume, because without supportive volume, a price movement has no conviction. 
Trading Strategies
Introduction To Technical Analysis Price Patterns
To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form. 
Active Trading Fundamentals
How Market Psychology Drives Technical Indicators
The tenets of market psychology underlie each and every charting tool.