Positive Volume Index Indicator

The Positive Volume Index Indicator MT5 is a powerful technical analysis tool that helps traders identify market trends and potential reversal zones. This MT5 oscillator works by building an Exponential Moving Average (EMA) with a period of 10. It fluctuates between specific upper and lower levels to indicate overbought and oversold market conditions.

When the indicator approaches the upper level, it suggests the market may be overbought, signaling a potential sell opportunity. Conversely, when it approaches the lower level, it indicates an oversold condition, often pointing to a buy opportunity.

How the Positive Volume Index Works in MT5

The Positive Volume Index (PVI) measures price movement relative to trading volume. It increases on days when volume rises and decreases when volume falls. By applying a 10-period EMA, the indicator smooths out market noise, allowing traders to better identify real momentum changes.

This makes it especially useful for:

Spotting market reversals

Identifying trend strength

Timing entry and exit points

However, like most oscillators, it’s more reliable on longer timeframes (such as H4, D1, or W1 charts). Shorter timeframes may produce false signals due to market volatility.

Positive Volume Index Indicator BUY and SELL Signals

The Positive Volume Index Indicator MT5 generates clear BUY and SELL signals based on overbought and oversold zones.

BUY Signal:
When the EMA signal line moves close to the lower level, the market is considered oversold. Traders may look for buying opportunities as prices could rise soon.

SELL Signal:
When the EMA line nears the upper level, the market enters the overbought zone. This suggests potential selling opportunities or a time to close long positions.

For higher accuracy, traders often combine the PVI with other indicators like:

Moving Average (MA)

Relative Strength Index (RSI)

MACD Indicator

This multi-indicator confirmation strategy helps reduce false signals and improves overall trade reliability.

Benefits of Using the Positive Volume Index MT5 Indicator

Simple to use: Easy-to-read visual oscillator format.

Effective for trend confirmation: Works best on long-term charts.

Compatible with other indicators: Pairs well with RSI and MACD.

Free download: Available at IndicatorForest.com.

By identifying volume-driven market strength, the Positive Volume Index can enhance any trader’s technical analysis toolkit.

Best Timeframes and Settings

While you can use the Positive Volume Index MT5 on any chart, the indicator performs best on:

H4 (4-hour)

D1 (Daily)

W1 (Weekly)

For most trading styles, the default EMA period of 10 provides balanced responsiveness and accuracy. Day traders may experiment with smaller periods, while swing traders can test higher ones.

Conclusion

The Positive Volume Index Indicator MT5 is an essential oscillator for identifying overbought and oversold zones in the market. By monitoring volume changes and price momentum, it provides valuable BUY and SELL signals.

For best results, use the indicator alongside other tools such as moving averages or RSI to confirm your entries.

You can download the Positive Volume Index Indicator MT5 for free directly from IndicatorForest.com. Start improving your trading strategy today!