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@@ -13,9 +13,7 @@
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| **PineScript** | [nvi.pine](nvi.pine) |
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- The Negative Volume Index tracks price changes exclusively on days when trading volume decreases compared to the previous day.
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- Parameterized by `startvalue` (default 100.0).
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- Output range: Unbounded.
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- Requires `> 2` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [PVI](../pvi/Pvi.md), [OBV](../vwad/Vwad.md) | **Complementary:** 255-day MA of NVI | **Trading note:** Negative Volume Index; tracks price on low-volume days where smart money operates.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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The Negative Volume Index tracks price changes exclusively on days when trading volume decreases compared to the previous day. The underlying theory: institutional investors—the "smart money"—prefer to accumulate or distribute positions during quiet, low-volume periods, while retail traders drive high-volume days with more emotional, less informed decisions.
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@@ -195,4 +193,4 @@ NVI and PVI provide complementary signals:
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- Fosback, N. (1976). *Stock Market Logic*. Institute for Econometric Research.
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- Investopedia. "Negative Volume Index (NVI)." [Definition](https://www.investopedia.com/terms/n/nvi.asp)
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- StockCharts. "Negative Volume Index (NVI)." [Technical Indicators](https://school.stockcharts.com/doku.php?id=technical_indicators:negative_volume_index)
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- TradingView. "PineScript ta.nvi()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}nvi)
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- TradingView. "PineScript ta.nvi()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}nvi)
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