Home > Technical analysis > Indicators and oscillators > Percentage Volume Oscillator (PVO)

# Percentage Volume Oscillator (PVO)

The **PVO** is the percentage distinction between 2 moving averages of volume. The indicator is measured like this:

PVO = ((Vol 12-day EMA - Vol 26-day EMA)/Vol 12-day EMA) x 100

As you see, the **Percentage Volume Oscillator** has a maximum value of +100, but no minimum value. The absolute value is not as essential as the direction or the crosses over and under the zero line. The PVO can be used to identify periods of contracting or expanding volume in 3 various ways:

Fluctuations in the PVO are completely separate from price fluctuations. As such, fluctuations in PVO are connected with price fluctuations to assess the degree purchasing or selling pressure. Advances combined with strength in the PVO would be considered strong. Should the PVO decline while a security's price fell, it demonstrates decreasing volume on the decline.

### Centerline Crossovers

Like the PPO, the PVO fluctuates above and below the zero line. The shorter EMA of volume is greater than the longer EMA of volume if PVO is positive. The shorter EMA of volume is less than the longer EMA of volume if PVO is negative. A PVO higher than zero indicates that volume levels are generally above average and rather heavy. Volume levels are usually under average and light if the PVO is below zero.