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This page contains the formula for Negative Volume Index and you can download the formula in Excel spreadsheet.

Negative Volume Index

Negative Volume Index is an index that focuses on days where the volume has significantly decreased from the previous days's trading. This is based on the theory that the "smart money" is trading on the days that the volumes are declining.

Formula:

If today's volume is less than yesterday's volume
NVI = Yesterday's NVI + ((( TC - YC) / YC ) * Yesterday's NVI )
If today's volume is greater than yesterday's volume
NVI = yesterday's NVI
If today's volume equals yesterday's volume
NVI = yesterday's NVI

TC = Today's close, YC = Yesterday's close

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