 |
|
The Cumulative Volume Index (CVI) is a momentum indicator highlighting whether money is flowing into or out of the entire stock market. It is calculated by subtracting the volume of declining stocks from the volume of advancing stocks, and then adding this value to a running total. The CVI uses the actual up and down volume from the NYSE. Divergences between the CVI and the market index generally presage a correction. Day traders may find it of limited use except as a 'warning' signal that the 'smart money' may be up to something. To calculate the CVI, subtract the volume of declining stocks from the volume of advancing stocks, and then add this to yesterday's CVI.. |
|
|||||||||||||
