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Strategy based on Negative Volume Index

The Negative Volume Index (NVI) is a growing indicator that uses the change in volume to determine when the smart money is active. The NVI focuses on periods where the volume reduces from the previous period. This index tries to determine what skilled traders are doing by looking at periods where the trading volume has reduced from the previous period. The NVI was developed to obtain buy signals on a given equity when the price is going upward, while the volume is trending downward. Trend reversals are pointed out by crossovers with a signaling which is a 255-period MA (moving average) of the NVI. Bull markets are supposed to occur when the NVI is above its 255-period MA. Buy signals are given when the NVI crosses above its 255-period MA and Sell signals are given when the NVI crosses below its 255-period MA.

Money Classic Research (MCR) is a leading stock advisory firm which adheres to the NVI strategies to obtain maximum benefits for traders. MCR serves our clients by providing stock future tips, Intraday Cash tips, Premium Stock tips, Intraday trading recommendations, and the information related to other trading platforms such as Nifty, Bank Nifty etc.

 

 

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Uploaded on June 22, 2016
Taken on June 22, 2016