Negative Volume Index (NVI) attempts to identify bull markets by showing what the
smart investors are doing. It is based on the assumption smart investors dominate
trading on light volume days and uninformed investors dominates trading on active
days. The NVI changes on days when the volume is down and stays flat on up volume
days. Look for the NVI to rise above its one year moving average to signal a bull
Also see the Positive Volume Index.
The Negative and Positive Volume Index were developed by Norman Fosback and are
described in his 1976 book, Stock Market Logic.