Cumulative Volume Index - CVI

DEFINITION of 'Cumulative Volume Index - CVI'

A momentum indicator that gauges the movement of funds into and out of the entire stock market by adding the difference between advancing and declining stocks to a running total.

BREAKING DOWN 'Cumulative Volume Index - CVI'

By showing the direction of volume flow, the CVI is very similar to OBV. The difference between the two indicators is in the actual methods of calculation. CVI uses actual up and down volume statistics while OBV generalizes the closing prices of a particular security.

CVI can be useful in determining the overall trend and its starting point. Any divergences between the CVI and the market index are indicators of a future correction.

RELATED TERMS
  1. On-Balance Volume (OBV)

    A momentum indicator that uses volume flow to predict changes ...
  2. Confirmation

    The use of an additional indicator or indicators to substantiate ...
  3. Volume Price Trend Indicator - ...

    A technical indicator consisting of a cumulative volume line ...
  4. Net Volume

    A term in technical analysis that represents a security's uptick ...
  5. Accumulation/Distribution

    A momentum indicator that attempts to gauge supply and demand ...
  6. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
Related Articles
  1. Active Trading Fundamentals

    Market Breadth: Volume Studies

    Fortunately, the basic signals conveyed by volume data are easy to read. When a stock is traded, the transaction is recorded and included in the daily volume. When volume levels spike for a ...
  2. Insurance

    Exploring Oscillators and Indicators: On-Balance Volume

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The on-balance volume indicator (OBV) is one of the most well-known technical indicators and it focuses on the importance ...
  3. Chart Advisor

    A Multi-Asset Income ETF For Defensive Investors

    In light of market volatility and worries that stocks are overbought, one product worth noting is the Guggenheim Multi-Asset Income ETF.
  4. Technical Indicators

    How On-Balance Volume Reveals Market Players' Strategy

    On-Balance Volume (OBV) reveals the intent of market players, often before price action generates a buy or sell signal.
  5. Forex Education

    On-Balance Volume

    The on-balance volume indicator (OBV) is one of the most well-known technical indicators, and it focuses on the importance of volume and how it can affect a given price and asset's momentum.
  6. Chart Advisor

    These Energy Stocks Are Poised For A Pop (MPC, CVI)

    Falling energy prices have pushed many companies to unjustifiably low levels. Ultra-low readings on RSI indicators suggest that these stocks could be ready for a move higher.
  7. Insurance

    Exploring Oscillators and Indicators: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every short-term trader is to determine the direction of a given asset's momentum and to attempt to profit from ...
  8. Chart Advisor

    3 Beaten Down Stocks With Bullish Volume Patterns (PWR, FIS)

    This bullish volume divergence predicts that price will catch up, often heading higher at a rapid rate of advance.
  9. Trading Strategies

    Market Strength: Conclusion

    The usefulness of these indicators depends on what type of investor you are. Long-term investors shouldn't care too much if the S&P futures are up or down before the markets open, whereas ...
  10. Technical Indicators

    The Four Most Commonly-Used Indicators In Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and to find entry/exit points.
RELATED FAQS
  1. What is the Cumulative Volume Index (CVI) formula and how is it calculated?

    Discover how to calculate the cumulative volume index, a technical momentum indicator used by traders and analysts to gauge ... Read Answer >>
  2. How do I build a trading strategy using the Cumulative Volume Index - CVI?

    Find out how traders and analysts make use of the cumulative volume index, a technical breadth indicator, within their trading ... Read Answer >>
  3. Why is the Cumulative Volume Index (CVI) useful for traders?

    Learn why the cumulative volume index can be a useful market breadth indicator for traders, and how its movements can be ... Read Answer >>
  4. What is the On-Balance Volume (OBV) formula and how is it calculated?

    Read about the formula and calculation for On Balance Volume, or OBV, which is a technical indicator that shows movements ... Read Answer >>
  5. Why is On-Balance Volume (OBV) important for traders and analysts?

    Discover reasons why the on-balance volume momentum indicator has become one of the most widely used and trusted tools of ... Read Answer >>
  6. What is a common strategy traders implement when using On-Balance Volume (OBV)?

    Read about common trading strategies that are implemented based off of signals generated from the On-Balance Volume momentum ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center