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
  1. Indicator

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  2. On-Balance Volume (OBV)

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  3. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  4. Intraday

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