Negative Volume Index (NVI)
Negative Volume Index is used together with the Positive Volume Index and it can identify bull markets. These indicators are created on the notion that smart money dominates trading on quiet days. From the other hand uninformed investors trade on active days. Norman Fosback first detailed this index in his 1976 book "Stock Market Logic."
The odds of a bull market are about 50/50 while the NVI is under its one-year average. Following this logic, the Negative Volume Index is most helpful as a bull market indicator. Fosback demonstrates that the bull market odds are 95 out of 100 when the NVI moves over its 1-year moving average.