Negative Volume Index Formula (Chart Controls)

Article
02/17/2011

The negative volume index formula helps identify a bull market. When the negative volume index is above its moving average there is higher probability for a bull market. The probability for a bull market is much lower when the negative volume index is below its moving average.

This formula should be used together with the Positive Volume Index Formula.

Sample plot of the negative volume index

Formula Details

Syntax

Chart.DataManipulator.FinancialFormula(
    FinancialFormula.NegativeVolumeIndex,
    "StartNVI",
    "Close,Volume",
    "NVI")

Parameters

This formula takes one required parameter.

StartNVI
Start value of the negative volume index.

Input Values

This formula takes two input Y values.

Close
Daily close price.

Volume
Daily volume.

Output Value

This formula outputs one Y value.

NVI
Negative volume index.

Remarks

The Line chart type is a convenient chart type to display the formula output.

Example

The following example takes input from Series1's Y value for the daily close price (Series1:Y4) and Series2's Y value for the daily volume (Series2:Y), and then outputs the negative volume index on Series3 (Series3:Y), using a starting index of 100.

Chart1.DataManipulator.FinancialFormula (FinancialFormula.NegativeVolumeIndex, "100", "Series1:Y4,Series2:Y", "Series3:Y")

Chart1.DataManipulator.FinancialFormula (FinancialFormula.NegativeVolumeIndex, "100", "Series1:Y4,Series2:Y", "Series3:Y");

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