✔️ Information reviewed and updated in May 2024 by Eduardo López
Volumes are one of the factors that experts take into account when deciding what to invest in, how to invest, and how much to invest. That is why taking into account the positive volume index, which we will talk about here, is very important.
✨How is the positive volume index calculated? ✨
Although the calculation can be a bit complex, it is always useful to take into account the data to consider in your calculation. Here we have to use the volume of the day before, the volume of the day, the price of the day and the price of the day. In this way, the platform makes the calculation in an automated way.
✨ What is this indicator for? ✨
The objective of this index is to link changes in the behavior of volumes and prices, thus creating a correlation between the two. In this way, it is possible to identify rises or uptrends in volumes.
Unlike other indicators, such as its counterpart known as the negative volume indicator, this positive volume index only detects upward changes. So, you will only get a partial look up at the behavior of asset volumes. Many experts suggest supplementing it.
