Trade Volume Index
The Trade Volume Index is very similar to the balance volume indicator. The balance volume is good for daily price analysis, but not so good for intraday tick prices. Tick prices, especially in the stock market, often remain at the supply or demand level for a long time without changing. As a result, a horizontal support or resistance level is formed in the chart. During such periods when the price remains unchanged, the TVI continues to accumulate the volume of either buy trades or sell trades, depending on the last price change.
The TVI helps determine whether a security is being accumulated or distributed. If the TVI goes up, trades are made at ask prices: buyers are accumulating the security. If the TVI goes down, trades are made at bid prices: sellers are dumping the security.
If prices are forming a horizontal resistance level, while the TVI is growing, you should prepare for an upward price breakout. If they are forming a horizontal support level, while the TVI is falling, you should expect prices to fall below the support level.
The indicator view in the chart.
The indicator has the following parameters:
Period - setting of the indicator calculation period.
Panel/Moving average period - selection of the indicator location in the chart:
- New panel
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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