The Positive Volume Index was introduced by Norman Fosback and is often used in conjunction with Negative Volume Index to identify bull and bear markets.The positive volume index (PVI) is an indicator which tracks volume as it increases from the previous day Postive Volume Index Formula If the current volume is greater than the previous day, then the formula for the PVI … [Read more...]
The Mass Index Indicator – Basic Concept
Mass Index was developed by Donald Dorsey in order to catch the trend reversal points. The daily prices movements are used for this purpose. In case the movement is considerable the Mass Index goes up, otherwise if it is slight the Mass Index goes down.The Mass Index is used to warn of a future price reversal. The theory behind the Mass Index is that reversals occur when the … [Read more...]
How to Use Technical Analysis Indicator
Indicators are calculations based on the price and the volume of a security that measure such things as money flow, trends, volatility and momentum. Indicators are used as a secondary measure to the actual price movements and add additional information to the analysis of securities. Technical Analysis is an inexact science. It is a method used by technical traders to research … [Read more...]
what is Market Breadth
Market breadth is a means of measuring the strength of a trend in a securities market. Market breadth studies include: advancing vs. declining securities; up volume vs. down volume; new highs vs. new lows; number of stocks trading above or below a moving average; etc., in the market or index that is being studied. Market breadth indicators are sometimes referred to as internal … [Read more...]