# Positive Volume Index & Negative Volume Index

The **Positive Volume Index** measures volume on the points that the volume is greater than the prior point.

The interpretation of Positive Volume Index (PVI) assumes that on days when volume increases, the crowd-following "uninformed" investors are in the market. Conversely, on days with decreased volume, the "smart money" is quietly taking positions.

Values for PVI greater than their one year Moving Average are commonly seen as bullish.

The **Negative Volume Index** measures volume on the points that the volume is less than the prior point.

The interpretation of the Negative Volume Index (NVI) assumes that on days when volume increases, the crowd-following "uninformed" investors are in the market. Conversely, on days with decreased volume, the "smart money" is quietly taking positions. Thus, the NVI displays what the smart money is doing.

Values for NVI greater than their one year Moving Average are commonly seen as bullish.

Read more about PVI/NVI at Wikipedia.