The Positive Volume Oscillator (PVO) is one of the practical tools among MetaTrader 4 oscillators. Like other oscillators, it analyzes market volume changes to predict price movements.
This tool displays two exponential moving averages (EMAs) with periods of 10 and 2 in the oscillator window.
Indicator Specifications Table
The specifications of this indicator are summarized in the table below.
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Indicator Categories:
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Oscillators MT4 Indicators
Volatility MT4 Indicators
Trading Assist MT4 Indicators
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Platforms:
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MetaTrader 4 Indicators
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Trading Skills:
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Elementary
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Indicator Types:
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Range MT4 Indicators
Reversal MT4 Indicators
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Timeframe:
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Multi-Timeframe MT4 Indicators
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Trading Style:
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Intraday MT4 Indicators
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Trading Instruments:
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Stock Market MT4 Indicators
Cryptocurrency MT4 Indicators
Forex MT4 Indicators
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Overview of the Indicator
The crossing of the exponential moving average (EMA) lines in the Positive Volume Oscillator window provides essential information on volume changes:
- If the EMA line crosses from above to below, it indicates a downtrend.
- If the cross occurs from below to above, it signals an uptrend.
Indicator in an Uptrend
In the image below, the price trend becomes bullish after the fast EMA crosses the slow EMA upwards.
Traders enter buy trades in these areas. Subsequently, when the lines cross downward again, indicating a shift to a bearish trend, traders exit their trades.
Indicator in a Downtrend
In the USD/CAD currency pair's current market trend, the price enters a bearish phase after the fast EMA crosses the slow EMA downward.
Traders open sell trades after receiving necessary confirmations from other technical analysis tools.
Positive Volume Oscillator Settings
The complete settings of the indicator are displayed in the image below:
- Smoothing Period for Positive Volume: This represents the slow EMA period
- EMA Period for Comparison: Represents the fast EMA period
- Theme: Background theme of the indicator
Conclusion
The Positive Volume Oscillator (PVO) is designed to analyze the relationship between trading volume and price. It is recognized as an effective tool for identifying bullish and bearish trends.
Traders can adjust their strategies based on volume analysis and price movements using other Trading Assist Indicators for MT4.
What is the Positive Volume Oscillator (PVO)?
The PVO is a technical analysis tool that examines trading volume changes.
Is it sufficient to use the PVO alone?
No, it is recommended that the PVO be used alongside other technical tools, such as support and resistance levels, price patterns, and complementary indicators like RSI or MACD.