The PVI used to highlight days where volume has increased significantly above previous days volumes. The idea behind this index is to spot when affluent investors are trading and dominating the markets on the quieter days. This index is used in conjunction with the negative volume index, which highlights lower volume days. The PVI crossing below its 1 year moving average increases the chances of a bear market.

This indicator gauges investor sentiment by looking at a ratio of put options to call options. A higher volume of call to puts would imply a Bullish outlook on the market.