NVI — Negative Volume Index
Overview
The Negative Volume Index tracks price changes exclusively on days when volume decreases, based on the theory that smart money operates during quieter trading sessions. NVI is a long-term tool primarily used in stock markets to detect institutional accumulation. Pair it with the PVI for a complete picture and browse our indicator guide library for additional volume analysis tools.
How It Works
When today's volume is less than yesterday's: NVI = previous NVI + (percentage price change × previous NVI). When volume increases, NVI stays unchanged. A 255-day EMA is typically overlaid as a signal line. NVI rising on falling volume suggests informed buyers are quietly accumulating.
Key Signals
- NVI above its 255-day EMA = long-term bullish market regime (historically 96% rally probability).
- NVI below its 255-day EMA = long-term bearish or uncertain regime.
- Rising NVI on falling volume = quiet accumulation by informed participants.
Common Mistakes
- Using NVI for short-term trading — it's designed for long-term trend assessment.
- Applying NVI to crypto markets where volume data may be inflated or unreliable.
- Ignoring the PVI counterpart — NVI and PVI work best as a pair.
More Volume Indicators
PVT — Price Volume Trend
Price Volume Trend is similar to <a href="/academy/indicators/on-balance-volume" class="text-primary hover:underline">OBV</a> but adjusts each period's volume by the percentage change in price, giving proportionally more weight to large moves and less to small ones. PVT provides a more nuanced view of accumulation and distribution in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a>. Pair PVT with trend-following <a href="/strategies" class="text-primary hover:underline">strategies</a> and explore our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> for complementary tools.
PVI — Positive Volume Index
The Positive Volume Index tracks price changes exclusively on days when volume increases, reflecting crowd-driven activity and retail sentiment. PVI works in tandem with the <a href="/academy/indicators/negative-volume-index" class="text-primary hover:underline">NVI</a> to contrast smart-money behaviour with public participation in <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a> markets. Explore our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> for the full suite of volume-based analytical tools.
EMV — Ease of Movement
Ease of Movement relates price change to volume, showing how easily price is moving — large price change on low volume produces high EMV readings, while small moves on heavy volume produce low readings. It is a unique perspective on market efficiency useful in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a>. Add EMV to your <a href="/strategies" class="text-primary hover:underline">trading strategies</a> alongside other volume tools from our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.
Chaikin Oscillator
The Chaikin Oscillator applies the <a href="/academy/indicators/macd" class="text-primary hover:underline">MACD</a> formula to the <a href="/academy/indicators/accumulation-distribution" class="text-primary hover:underline">Accumulation/Distribution</a> line, producing a momentum reading of money flow that leads price turns. It is particularly useful for validating breakout strength in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and spotting divergence before significant moves in <a href="/market/crypto" class="text-primary hover:underline">crypto</a>. Browse our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to pair the Chaikin Oscillator with trend-following tools.