Negative Volume Index
Nearly 78 years have passed since Paul L. Dysart, Jr. invented the Negative Volume Index and Positive Volume Index indicators. The indicators remain useful to identify primary market trends and reversals.
In 1936, Paul L. Dysart, Jr. began accumulating two series of advances and declines distinguished by whether volume was greater or lesser than the prior day’s volume. He called the cumulative series for the days when volume had been greater than the prior day’s volume the Positive Volume Index (PVI), and the series for the days when volume had been lesser the Negative Volume Index (NVI).
A native of Iowa, Dysart worked in Chicago’s LaSalle Street during the 1920s. After giving up his Chicago Board of Trade membership, he published an advisory letter geared to short-term trading using advance-decline data. In 1933, he launched the Trendway weekly stock market letter and published it until 1969 when he died. Dysart also developed the 25-day Plurality Index, the 25-day total of the absolute difference between the number of advancing issues and the number of declining issues, and was a pioneer in using several types of volume of trading studies. Richard Russell, editor of Dow Theory Letters, in his January 7, 1976 letter called Dysart "one of the most brilliant of the pioneer market technicians."
Read more about Negative Volume Index: Dysart’s NVI and PVI, Dysart’s Interpretation of NVI and PVI, Fosback’s Variations
Famous quotes containing the words negative, volume and/or index:
“The working woman may be quick to see any problems with children as her fault because she isn’t as available to them. However, the fact that she is employed is rarely central to the conflict. And overall, studies show, being employed doesn’t have negative effects on children; carefully done research consistently makes this clear.”
—Grace Baruch (20th century)
“A big leather-bound volume makes an ideal razorstrap. A thin book is useful to stick under a table with a broken caster to steady it. A large, flat atlas can be used to cover a window with a broken pane. And a thick, old-fashioned heavy book with a clasp is the finest thing in the world to throw at a noisy cat.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“Exile as a mode of genius no longer exists; in place of Joyce we have the fragments of work appearing in Index on Censorship.”
—Nadine Gordimer (b. 1923)