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@@ -13,9 +13,7 @@
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| **PineScript** | [pvi.pine](pvi.pine) |
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- The Positive Volume Index tracks price changes exclusively on days when trading volume increases compared to the previous day.
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- Parameterized by `startvalue` (default 100.0).
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- Output range: Unbounded.
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- Requires `> 2` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [NVI](../nvi/Nvi.md), [OBV](../vwad/Vwad.md) | **Complementary:** MA crossover | **Trading note:** Positive Volume Index; tracks price on high-volume days. Used with NVI for smart/uninformed money.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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The Positive Volume Index tracks price changes exclusively on days when trading volume increases compared to the previous day. The underlying theory: retail investors—the "uninformed crowd"—drive high-volume trading days, often reacting emotionally to news and price movements. Institutional investors prefer to operate during quieter periods to avoid moving markets.
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@@ -194,4 +192,4 @@ The danger signal: **PVI rising while NVI falling**. Retail enthusiasm without i
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- Fosback, N. (1976). *Stock Market Logic*. Institute for Econometric Research.
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- Investopedia. "Positive Volume Index (PVI)." [Definition](https://www.investopedia.com/terms/p/pvi.asp)
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- StockCharts. "Positive Volume Index (PVI)." [Technical Indicators](https://school.stockcharts.com/doku.php?id=technical_indicators:positive_volume_index)
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- TradingView. "PineScript ta.pvi()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}pvi)
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- TradingView. "PineScript ta.pvi()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}pvi)
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