Used in conjunction with the Positive Volume Index(PVI), the Negative Volume Index (NVI) tries to identify bull markets. These indicators are build on the assumption that smart money dominates trading on quiet days while less uninformed investors dominate trading on active days.
The Negative Volume Index(NVI) and the Positive Volume Index (PVI) are developed by Norman Fosback and published in his book “Stock Market Logic” dated 1976.
Calculation:
PrevVolume = The previous volume
PrevPrice = The previous price
PrevNVI = The previous value of the indicator
Inputs:
Price Field = Close
Indicates Open, High, Low or Closing price.
Indicator Type: Market Strength
See Also