Trade Volume Index - TVI

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DEFINITION of 'Trade Volume Index - TVI'

A technical indicator that measures the amount of money flowing in and out of an asset. Unlike many technical indicators, the TVI is generally created using intraday price data. The underlying assumption of this indicator is that there is buying pressure when the price trades near the asking price and selling pressure when it trades near the bid.

INVESTOPEDIA EXPLAINS 'Trade Volume Index - TVI'

This indicator is very similar to the on-balance volume indicator except that it focuses on the volume attributed to every trade rather than the closing volume that is attributable to all trades. This indicator is primarily used by day traders to identify whether a security is being accumulated (bought) or distributed (sold).

RELATED TERMS
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  3. Intraday

    Another way of saying "within the day". Intraday price movements ...
  4. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  5. Volume

    The number of shares or contracts traded in a security or an ...
  6. Momentum

    The rate of acceleration of a security's price or volume. The ...
RELATED FAQS
  1. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

    The trade volume index (TVI) indicates whether an asset is being accumulated or sold. It is calculated using intraday tick ... Read Full Answer >>
  2. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    The most common methods that investors use to analyze the benefits and risks associated with long-term investment in the ... Read Full Answer >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  4. What types of data are necessary to make a technical analysis?

    Virtually all technical analysis is designed to be done with data inputs of price and time. One other data input important ... Read Full Answer >>
  5. How do I build a profitable strategy when spotting a Tweezer pattern?

    The key to building a profitable trade strategy based on a tweezer pattern is establishing sufficient confirmation of the ... Read Full Answer >>
  6. How is a simple moving average calculated?

    The simple moving average (SMA) is a widely used technical used by traders and investors. It can be calculated for different ... Read Full Answer >>
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