Negative volume index

The Negative Volume Index and Positive Volume Index indicators are indicators 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." Dysart’s NVI and PVI The daily volume of the New York Stock Exchange and the NYSE Composite Index's advances and declines drove Dysart's indicators. Dysart believed that “volume is the driving force in the market.” He began studying market breadth numbers in 1931, and was familiar with the work of Leonard P. Ayres and James F. Hughes, who pioneered the tabulation of advances and declines to interpret stock market movements.