Equity Based Analysis > Technical Analysis > Indicators > Cumulative Volume Ratio (CVR) |
The Cumulative Volume Ratio (CVR) is the improved version of the Cumulative Volume Index (CVI) indicator.
Because there is no updates on the increasing volumes, the CVI is usually an upside trend line. The Cumulative Volume Ratio indicator is developed for the sake of comparativeness.
CVR is usually a downside trend line. This is unfortunately more misleading than the CVI. The reason behind these trends is the increasing prices in the high volumes and decreasing prices in the low volume.
Calculation:
CVR =
UPV = The total volume of the securities with a higher closing price of the previous closing price
DNV = The total volume of the securities with a lower closing price of the previous closing price
PrevCVR = The previous value of the indicator
Inputs:
Group = XU100
Indicates the portfolio, group or index.
Indicator Type: Market Breadth