Charts

Trade Volume Index (TVI)

Description

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.

Formula

\(EMA1 = EMA1n-1 + ((2 / (n + 1)) * (Pn - EMA1n-1)))\

\(EMA2 = EMA2n-1 + ((2 / (n + 1)) * (EMA1n - EMA2n-1)))\

\(EMA3 = EMA3n-1 + ((2 / (n + 1)) * (EMA2n - EMA3n-1)))\

\(TRIX = (EMA3n - EMA3n-1 ) / EMA3n-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