PERCENTAGE VOLUME OSCILLATOR (PVO) - DOCUMENTATION (DESCRIPTIONS OF EXISTING RULES/INDICATORS)

[Cal231995]

What Is the Percentage Volume Oscillator (PVO)? The percentage volume oscillator (PVO) is a momentum indicator that measures the difference between two moving averages as a percentage of the larger moving average. The fast moving average uses a lower period, and is thus more reactive to changes in volume. The slow moving average uses a faster period and is therefore less reactive. The 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 used to confirm or refute other signals. A bullish reversal of an asset is identify when the PVO cross above zero line. And a bearish reversal when the PVO cross below the zero line.

Formula for PVO :

Allocation Strategy : The strategy is to identify Bullish and Bearish Reversal Bullish Reversal: when PVO is above zero Bearish Reversal: when PVO is below zero

The theory suggests that asset price will have a trend shift when the PVO cross above zero levels and vice versa. So:

if PVO > 0 then allocation = max_allocation(long position)

if PVO < 0 then allocation = -max_allocation(short position) else: allocation = 0

Definition free of copyright issues. thank you

[fhashim]

@Cal231995 please rectify the description of this rule, the current description starts with PPO.

[Cal231995]

@Cal231995 please rectify the description of this rule, the current description starts with PPO.

edited. Thanks