Trade Volume Index - TVI

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).

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RELATED FAQS
  1. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

    Learn what the trade volume index indicates, how to identify accumulation or distribution using it, and how traders use it ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What are the best technical indicators to complement the Volatility Ratio?

    Learn why using the volume indicator with the volatility indicator helps investors identify breakouts from established trading ... Read Answer >>
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