The Cumulative Volume Index (CVI) is a popular technical analysis tool used by traders and investors to measure the flow of volume related to price changes in a stock or asset. It helps in understanding the buying and selling pressure by cumulatively adding volume adjusted by price movement. This calculator simplifies the process by allowing you to input previous CVI, current volume, current price, and previous price to get the updated CVI instantly.
Formula
The Cumulative Volume Index is calculated as: CVI equals previous CVI plus current volume multiplied by the fraction of the difference between current price and previous price over the previous price.
How to use
Enter the previous CVI value, current trading volume, current price, and previous price into the respective fields. Click on the “Calculate” button. The calculator will display the updated Cumulative Volume Index, helping you analyze market momentum.
Example
Suppose the previous CVI is 1000, current volume is 5000, current price is 150, and previous price is 145. The CVI is calculated by adding 1000 plus 5000 times (150 minus 145) divided by 145, which equals 1000 + 5000 * (5/145) = 1000 + 172.41 = 1172.41.
FAQs
- What is the Cumulative Volume Index?
It is an indicator that accumulates volume adjusted by price changes to measure market momentum. - How is CVI different from On-Balance Volume?
CVI adjusts volume by the relative price change, whereas On-Balance Volume adds or subtracts volume based on price direction only. - Why is CVI useful?
It helps traders identify buying or selling pressure trends over time. - Can CVI be negative?
Yes, if price drops significantly with volume, CVI can decrease. - What input values are needed for this calculator?
Previous CVI, current volume, current price, and previous price. - What happens if previous price is zero?
The calculation is invalid since division by zero is undefined. - Can this calculator be used for any asset?
Yes, it can be used for stocks, commodities, or any traded asset with volume and price data. - How often should CVI be calculated?
Typically, after each trading period such as daily or intraday intervals. - Is CVI a leading or lagging indicator?
It is generally considered a lagging indicator since it accumulates past data. - Can CVI indicate trend reversals?
Significant changes in CVI can signal potential trend shifts. - What does an increasing CVI signify?
Increasing CVI indicates buying pressure and potentially rising prices. - What does a decreasing CVI mean?
Decreasing CVI suggests selling pressure and possibly declining prices. - How to interpret a flat CVI?
It indicates balanced buying and selling or low momentum. - Is CVI affected by volume spikes?
Yes, large volume changes can strongly influence CVI values. - Can I use this calculator on mobile?
Yes, the simple design allows it to work on mobile devices. - Can CVI be combined with other indicators?
Yes, it’s often used alongside RSI, MACD, and moving averages. - What time frame should I use for CVI?
It depends on your trading style—short-term or long-term analysis. - Is CVI calculation complex?
Not with this calculator; it automates the process. - Can CVI be used for crypto trading?
Yes, as long as volume and price data are available. - Does the calculator provide historical CVI data?
No, it calculates CVI based on inputs you provide; keep track separately for history.
Conclusion
The Cumulative Volume Index Calculator is a powerful and easy-to-use tool that helps traders and investors track market volume dynamics in relation to price changes. By simplifying the calculation process, it provides quick insights into market momentum, aiding better trading decisions. Whether you are analyzing stocks, commodities, or cryptocurrencies, this calculator offers a fast and reliable way to monitor cumulative volume index values.