The Trade Volume Index (TVI) uses price and volume to show whether a security is being purchased or sold. It is very similar to the On Balance Volume(OBV) indicator. The OBV works well with daily prices, but it doesn't work as well with intraday tick prices. The difference between the OBV and the TVI is that the TVI makes use of intraday tick data while the OBV uses of end of day data.
The TVI can identify whether a security is being accumulated or distributed. When the TVI is trending up, trades are taking place at the asking price as buyers accumulate the security. When the TVI is trending down, it shows that trades are taking place at the bid price as sellers distribute the security.
When prices are flat and the TVI is rising, look for prices to start to move to the upside. When prices are flatand the TVI is falling, look for prices to drop.
Calculation:
If (Price-PrevPrice)>+Min_Tick then Direction=1 (Accumulation)
If (Price-PrevPrice)<-Min_Tick then Direction=0 (Distribution)
If ((Price-PrevPrice)<=+Min_Tick) and ((Price-PrevPrice)>=-Min_Tick) then Direction=PrevDirection
Inputs:
Price Field = Close
Indicates Open, High, Low or Closing price.
Min. Move = 0.125
Indicates the change value in the price
Indicator Type: Market Strength