The Percentage Volume Oscillator (PVO) is a momentum oscillator for volume. PVO measures the difference between two volume-based moving averages (26 day vs. 12 day) as a percentage of the larger moving average. As with MACD and the Percentage Price Oscillator (PPO), it is shown with a signal line (9 day), a histogram and a centerline.
Percentage Volume Oscillator (PVO): ((12-day EMA of Volume - 26-day EMA of Volume)/26-day EMA of Volume) x 100. The PVO has a maximum of 100, but no minimum value.
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. An increase or decrease in price accompanied by an increase in volume is considered a sign of strength in the prevailing trend.