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.

BREAKING DOWN '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. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
  2. Accumulation/Distribution

    An indicator that tracks the relationship between volume and ...
  3. Volume Of Trade

    The total quantity of futures contracts bought and sold during ...
  4. Demarker Indicator

    An indicator used in technical analysis that compares the most ...
  5. Net Volume

    A term in technical analysis that represents a security's uptick ...
  6. Confirmation

    The use of an additional indicator or indicators to substantiate ...
Related Articles
  1. Investing

    What The Market Open Tells You

    The first few moments of trading provide a lot of information. If a trader analyzes this information, it can give a lot of insight into the market's moves for the day.
  2. Trading

    How To Use Volume To Improve Your Trading

    Volume is a simple yet powerful way for traders and investors to increase their profits and minimize risks.
  3. Trading

    Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.
  4. Trading

    Interpreting Volume For The Futures Market

    Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.
  5. Trading

    Using Technical Indicators To Develop Trading Strategies

    Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.
  6. Trading

    How To Use Volume To Improve Your Trading

    The basic guidelines to analyzing volume may not apply in all situations, but overall, they can help direct entry and exit decisions.
  7. Investing

    How to Use Trading Indicators Effectively

    Careful and effective use of technical indicators can improve your odds of finding an investment’s best entry and exit points.
RELATED FAQS
  1. How do I use Trade Volume Index (TVI) to create a forex trading strategy?

    Find out about the trade volume index, what it indicates about a security and how to build a forex strategy using the trade ... Read Answer >>
  2. Why is the Trade Volume Index (TVI) important for traders and analysts?

    Find out more about the trade volume index, what the indicator measures and why it is important to traders and analysts. Read Answer >>
  3. What is the Trade Volume Index (TVI) formula and how is it calculated?

    Find out more about the trade volume index, what it measures, the formulas used for the trade volume index and how to calculate ... Read Answer >>
  4. How do I start using technical analysis?

    Technical analysis is a method of analyzing securities by evaluating current and historical price and/or volume activity. ... Read Answer >>
  5. Why is the Uptick Volume important for traders and analysts?

    Find out why technical analysts and traders keep track of uptick volume to better assess the momentum of a stock's price ... Read Answer >>
  6. How do I use Positive Volume Index (PVI) for creating a forex trading strategy?

    Understand the basics of the positive volume index and how investors in the forex markets use this contrarian indicator to ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center