Negative Volume Index

Negative Volume Index Interpretation:

This indicator links the behavior of the volume and price. It can identify a decrease in volume synchronized with a decrease in prices. The Negative Volume Index (NVI) detects only the signals or decrease opposed to the Positive Volume indicator. Less informed investors follow rising volumes and are in the market. Whereas when the volume decreases the more informed investors are in the market. The market is more bullish when the NVI rises above its moving average.

Negative Volume Index Calculation:

If today's volume < yesterday's volume then NVI = NVI(vellie) + (today's close - yesterday's close)/(yesterday's close x yesterday's NVI) If today's volume > yesterday's volume then NVI = yesterdays' NVI

Return from Negative Volume Index to Using Indicators

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