The Positive Volume Indicator for MT4 is an oscillator that works just like any other indicator. The indicator plots EMA period-10 and oscillates at certain levels, including the overbought or oversold levels.
The indicator will be in the overbought area if it is near the upper level. When the indicator is near the lower level it indicates the oversold area. The indicator works best with longer timeframes as it can give false signals when used on shorter timeframes.
Buy/Sell signals based on Positive Volume Index Indicator
Traders can also enter long positions when the indicator indicates an oversold area. Traders may also combine the indicator with other indicators such as the Moving Average, or oscillators such as the RSI and MACD to confirm the signal.
The conclusion of the article is:
The Positive Volume Indicator is a standard oscillator that displays overbought or oversold levels. These levels allow traders to enter either long or short positions. You can also download the Positive Index Volume Indicator from our website for free.