NVI & PVI
Track smart money and crowd behavior using Negative and Positive Volume Indices.
Concept
- NVI (Negative Volume Index): Only changes on days when volume DECREASES. Theory: smart money trades on quiet days.
- PVI (Positive Volume Index): Only changes on days when volume INCREASES. Theory: crowd trades on high volume days.
Interpretation
- NVI above its 255-day MA = bullish (smart money accumulating)
- NVI below its 255-day MA = bearish
- Focus on NVI for long-term trend
- PVI more useful for short-term