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Apply a Negative Volume Index Indicator

This indicator relies on changes in a security’s volume to identify when so-called “smart money” (i.e. institutions, funds and professional traders) is driving the current trend. The Negative Volume Index suggests that unsophisticated investors buy and sell primarily on high-volume days, while shrewd investors are more likely to trade on low-volume days. Often when volume drops, price drops. If a stock’s price increases despite a decrease in volume, technical analysts consider this a positive sign. They use the negative volume index to help identify bull and bear markets.

To apply a Negative Volume Index Indicator

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Negative Volume Index and click Add to add the study to the Applied Studies group.
  3. Complete parameters as necessary.

Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.

Important Disclosures