Volume

Negative & Positive Volume Index

NVI/PVI

Two companion indicators: NVI updates only on low-volume days (when informed, ‘smart money’ is thought to trade), while PVI updates on high-volume days (when the crowd trades). A rising NVI above its 255-day EMA signals a bull market 96% of the time historically.

Tips

When NVI is above its 1-year EMA and PVI is also rising, the market has broad-based participation—the most bullish combination

NVI falling during a rally warns that quiet days are seeing distribution; the crowd (PVI) may be buying what the smart money is selling