Positive Volume Index (PVI) Indicator Explained

The Positive Volume Index (PVI) updates only on bars where volume increased from the previous bar — the noisy, headline-driven days when the crowd shows up. On quiet days it holds still. PVI is, by construction, a chart of crowd behavior.

How It Works

• On higher-volume bars: PVI compounds by the bar's percent price change.
• On lower-volume bars: PVI is unchanged.
• Typically compared to its one-year (255-bar) moving average.

How to Trade It

The Fosback tradition reads PVI vs its long average as a bull/bear gauge: PVI above its average = crowd-driven advances are holding, historically bull-market behavior. Divergence between PVI and NVI tells you whether crowd days and quiet days disagree — fertile context for regime calls.

Building It in Setup.Cash

Add Positive Volume Index (PVI) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. Always read alongside the Negative Volume Index. For the full category overview, see the volume indicators library guide.

Volume tools need volume data, so they shine on crypto and stocks. Backtest on the exact symbols and feed you plan to trade.