Percentage Volume Oscillator
The Percentage Volume Oscillator (PVO) is a momentum oscillator for volume. PVO measures the difference between two volume-based moving averages as a percentage of the larger moving average. As with MACD and the Percentage Price Oscillator (PPO), it is shown with a signal line, a histogram and a centerline. PVO is positive when the shorter volume EMA is above the longer volume EMA and negative when the shorter volume EMA is below. This indicator can be used to define the ups and downs for volume, which can then be use to confirm or refute other signals. Typically, a breakout or support break is validated when PVO is rising or positive.
Percentage Volume Oscillator (PVO):
((8-day EMA of Volume – 18-day EMA of Volume)/18-day EMA of Volume) x 100
Signal Line: 15-day EMA of PVO
PVO Histogram: PVO – Signal Line
The default settings for the PVO are (8.18.69), which is the same as MACD or the PPO. This means PVO is positive when the 15-day Volume EMA moves above the 26-day Volume EMA. PVO is negative when the 8-day Volume EMA moves below the 18-day Volume EMA.
The positive or negative degree depends on how far above or below. A PVO that equals 5 would indicate that the 12-day Volume EMA was 5% above the 26-day Volume EMA. A PVO that equals -3% would indicate that the 12-day Volume EMA was 3% less than the 26-day Volume EMA.
The PVO-Histogram acts just like the MACD and PPO histograms. The PVO-Histogram is positive when the PVO is trading above its signal line (9-day EMA). The PVO-Histogram is negative when the PVO is below its signal line. Note that the PVO is multiplied by 100 to move the decimal point two places.

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