New edge proposed: amibroker_negative_volume_index_trend — E8 Intelligence Research

{ "name": "amibroker_negative_volume_index_trend", "source": "Richard Arms / Negative Volume Index (NVI) as popularized by Norman Fosback", "type": "filter_flag", "rule": "On any bar where current volume is lower than previous bar volume, update NVI: NVI = previous NVI + (close - previous close)/previous close; on volume-expansion bars NVI is unchanged; take a long signal only when NVI is above its 255-bar simple moving average, and take a short signal only when NVI is below its 255-bar moving average.", "pseudocode": "if bar.volume < prev_bar.volume: nvi += (bar.close - prev_close)/prev_close; else: nvi = nvi; nvi_ma = sma(nvi, 255); long_filter = nvi > nvi_ma; short_filter = nvi < nvi_ma; apply as mandatory filter to candidate entry signals.", "why_it_works": "The NVI tracks smart-money accumulation during quiet volume periods; when it is above its long-term average it confirms a bullish underlying trend and below it a bearish trend." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com