Monday, November 13, 2006

 
Technical Indicators

Percentage Volume Oscillator (PVO)

Ihe Percentage Volume Oscillator (PVO) is the percentage difference between two moving averages of volume. Because of its formula, the PVO has a maximum value of +100, but no minimum value. The absolute value is not as important as the direction or the crosses above and below the zero line.

The PVO can be used to identify periods of expanding or contracting volume in three different ways:

· Centerline Crossovers:

· Directional Movement:

· Moving average crossovers:

Movements in the PVO are completely separate from price movements. As such, movements in PVO can correlated with price movements to assess the degree of buying or selling pressure. Advances combined with strength in the PVO would be considered strong. Should the PVO decline while a security's price fell, it would indicate decreasing volume on the decline.

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