Negative Volume Index (NVI)

Namespace: OpenQuant.API.Indicators
Assembly: OpenQuant.API (in OpenQuant.API.dll)

Syntax

Visual Basic (Declaration)
Public Class NVI Inherits Indicator

C#
public class NVI : Indicator

C++
ref class NVI : Indicator

J#
public class NVI extends Indicator

JScript
public class NVI extends Indicator

Remarks

The NVI relates a decrease in volume to the change in the contract?s price. The NVI displays only changes on days when volume decreases from the previous day. The interpretation is based on the assumption that on days with increasing trade volumes, the crowd-following "uninformed" investors are in the market. On days with decreasing trade volumes, on the other hand, the "smart money" is quietly taking positions. In this way, the changes in the NVI suggest what the smart money is doing. Remember that the NVI changes only on lower volume days.

Norman Fosback suggests that the odds of a bull market are 95 out of 100 when the NVI rises above its one-year Moving Average (255 days). When the NVI falls below its one-year Moving Average, the odds of a bull market are about 50/50.

The Negative Volume Index is not currently applicable for Intraday charts and will never be applicable for Tick charts, due to the nature of the data.

This indicator is described in more details in the Steve Achelis' book "Technical Analysis from A to Z".

Formula:

Inheritance Hierarchy

System.Object
OpenQuant.API.Indicator
OpenQuant.API.Indicators.NVI

Thread Safety

Public static (Shared in Visual Basic)staticShared members of this type are safe for multithreaded operations. Instance members are not guaranteed to be thread-safe.

Syntax

Remarks

Inheritance Hierarchy

Thread Safety

See Also