Indicator - Negative Volume Index
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Definition Negative Volume Index
If today's Volume < yesterday's volume then NVI = NVI(veille) + (today's close - yesterday's close)/[ yesterday's close × yesterday's NVI]\nIf today's volume > yesterday's volume then NVI = yesterday's NVI
Interpretation Negative Volume Index
This indicator links the behaviour of volume and price.
It can identify a decrease in volume synchronized with a decrease in prices.
The NVI or Negative Volume Idex, detects only the signals of decrease as opposed to the Positive Volume Indicator.
Less informed investors follow rising volumes and are in the market. Whereas when volume decreases the more informed investors are in the market. The market is more bullish when the NVI rises above its moving average.
