The Trade Volume Index (TVI) leverages intraday market data to show whether a security is being accumulated (purchased) or distributed (sold). The Trade Volume Index assumes that higher prices represent buy orders while lower prices are sell orders.
Configuration Options
- Min Tick Value: Minimum price movement required to include in the calculation.
- Field: Price or combination of prices to use as the base for average calculations. Possible values include:
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Open
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High
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Low
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Close
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Adjusted Close
- HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
- HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
- HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
- OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
- Color Selectors: Colors to use for graph elements.
- Display Axis Label: Whether to display the most recent value on the Y axis.
Formula
\[EMA1 = EMA1_\text{n-1} + \left ((\frac{2}{(n + 1)}) * (P_n – EMA1_\text{n-1}) \right)\]
\[EMA2 = EMA2_\text{n-1} + \left ((\frac{2}{(n + 1)}) * (EMA1_n – EMA2_\text{n-1}) \right)\]
\[EMA3 = EMA3_\text{n-1} + \left ((\frac{2}{(n + 1)}) * (EMA2_n – EMA3_\text{n-1}) \right)\]
\[ TRIX = \frac{(EMA3_n – EMA3_\text{n-1})}{EMA3_\text{n-1}} \]
where:
- Pn =the current price.
- EMA1n-1 = the exponential moving average value of n periods back
- EMA2n-1 = the exponential moving average value of n periods back
- EMA3n-1 = the exponential moving average value of n periods back