Further reading: https://school.stockcharts.com/doku.php?id=technical_indicators:percentage_volume_oscillator_pvoA good measure to see how excited the herd is, before chasing a move. Very Useful when trading explosive stocks like, FNMA , PLUG, USU. I use this to filter when not to chase. Once you get familiar with this. You can trade the stocks with just Volume and Price. Also a good filter on how good a breakout is.
# Percent Volume Oscillator # Assembled by BenTen at useThinkScript.com # Converted from https://www.tradingview.com/script/MrbvbasA-Percent-Volume-Oscillator-by-ucsgears/ declare lower; input src = volume; input shortlen = 21; input longlen = 55; input smooth = 13; def short = expAverage(src, shortlen); def long = expAverage(src, longlen); def ppo = ((short - long) / long) * 100; def sig = expAverage(ppo, smooth); plot pp = ppo; plot signal = sig; plot histogram = ppo - sig; histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM); pp.SetDefaultColor(GetColor(0)); signal.SetDefaultColor(GetColor(1));