Cumulative Volume Index - CVI


DEFINITION of 'Cumulative Volume Index - CVI'

A momentum indicator that gauges the movement of funds into and out of the entire stock market by adding the difference between advancing and declining stocks to a running total.

INVESTOPEDIA EXPLAINS 'Cumulative Volume Index - CVI'

By showing the direction of volume flow, the CVI is very similar to OBV. The difference between the two indicators is in the actual methods of calculation. CVI uses actual up and down volume statistics while OBV generalizes the closing prices of a particular security.

CVI can be useful in determining the overall trend and its starting point. Any divergences between the CVI and the market index are indicators of a future correction.

  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. On-Balance Volume (OBV)

  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Volume Price Trend Indicator - ...

    A technical indicator consisting of a cumulative volume line ...
  5. Advance/Decline Line - A/D

  6. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  1. Why is the Cumulative Volume Index (CVI) useful for traders?

    Learn why the cumulative volume index can be a useful market breadth indicator for traders, and how its movements can be ...
  2. What is the Cumulative Volume Index (CVI) formula and how is it calculated?

    Discover how to calculate the cumulative volume index, a technical momentum indicator used by traders and analysts to gauge ...
  3. How do I build a trading strategy using the Cumulative Volume Index - CVI?

    Find out how traders and analysts make use of the cumulative volume index, a technical breadth indicator, within their trading ...
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