OPEN-SOURCE SCRIPT
Updated Positive Volume Index Backtest
The theory behind the indexes is as follows: On days of increasing volume,
you can expect prices to increase, and on days of decreasing volume, you can
expect prices to decrease. This goes with the idea of the market being in-gear
and out-of-gear. Both PVI and NVI work in similar fashions: Both are a running
cumulative of values, which means you either keep adding or subtracting price
rate of change each day to the previous day`s sum. In the case of PVI, if today`s
volume is less than yesterday`s, don`t add anything; if today`s volume is greater,
then add today`s price rate of change. For NVI, add today`s price rate of change
only if today`s volume is less than yesterday`s.
You can change long to short in the Input Settings
WARNING:
- For purpose educate only
- This script to change bars colors.
you can expect prices to increase, and on days of decreasing volume, you can
expect prices to decrease. This goes with the idea of the market being in-gear
and out-of-gear. Both PVI and NVI work in similar fashions: Both are a running
cumulative of values, which means you either keep adding or subtracting price
rate of change each day to the previous day`s sum. In the case of PVI, if today`s
volume is less than yesterday`s, don`t add anything; if today`s volume is greater,
then add today`s price rate of change. For NVI, add today`s price rate of change
only if today`s volume is less than yesterday`s.
You can change long to short in the Input Settings
WARNING:
- For purpose educate only
- This script to change bars colors.
Release Notes
Move to 4 versionOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.