Cumulative Volume Index (CVI)
period = 14 (2–200) Overview
The Cumulative Volume Index (CVI) is a momentum indicator that gauges the movement of funds into and out of the entire stock market by computing the difference between advancing and declining stocks as a running total. Originally designed as a breadth indicator for major indices like the NYSE or S&P 500, CVI reveals fundamental market strength or weakness that price indicators alone cannot provide by integrating participant conviction through volume analysis.
While its name suggests similarity to On-Balance-Volume, CVI actually counts the number of advancing versus declining securities rather than their actual trading volumes. Modern implementations have evolved to track cumulative volume flow on individual securities by adding volume on bullish days and subtracting it when bearish sentiments prevail, providing traders with a nuanced perspective of accumulation and distribution patterns, especially effective on timeframes under 15 minutes for momentum scalpers in 2025.
Interpretation & Trading Signals
Volume Flow Analysis:
- Positive Histogram: Confirms uptrends and identifies accumulation phases
- Negative Values: Confirms downtrends and potential distribution phases
- Volume Differentiation: Distinguishes bullish vs bearish sentiment through flow
- Cumulative Perspective: Assess volume spikes and gauge investor sentiment
Divergence Trading (2025):
- Bullish Divergence: Price forms lower lows while CVI forms higher lows - buying pressure building
- Bearish Divergence: Price forms higher highs while CVI forms lower highs - selling pressure mounting
- Momentum Insight: CVI reveals conviction behind price moves others miss
- Multi-Symbol CVD+: Compare volume flow between exchanges, futures & spot in single pane
Trading Applications:
- Scalpers: Best on sub-15m timeframes to catch sneaky price movements
- Swing Traders: Ride waves with volume flow confirmation
- Confirmation Tool: Use with chart patterns and other indicators for higher odds
- Trend Validation: Look for confirmation of trends and reversals through volume
Example Usage
Code examples will be available once the Rust implementation is complete.