Negative Put Volume Index

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Negative Put Volume Index

Variable List Abbreviation: NegPutVolIndex

 

Variable Mode(s): Futures2

[ Note: appears in indicator list only after put volume and selected ]

 

Parameter(s): NegPutVolIndex time periods

 

Description:

The sum of the fraction change in price during time periods of decreasing put volume.  The trend indicates whether prices are increasing of decreasing during time periods of decreasing put volume.  In theory the wise investors trade during time periods of declining activity, while the unwise investors trade during time periods of increasing activity.  Thus the trend should in theory indicate whether the wise investor is buying or selling.

 

Calculation:

                            Running total over n (time periods) time periods of

                                            (close - previous close) / previous close

                            for put volume down time periods.