Trade Volume Index

The Trade Volume Index shows if a security is accumulating or distributing based on the exchanges that take place on the bid or ask. For this reason, to get a precise indication, it is used on low time frames, minutes or hours, and only after exchanges have started. This is because otherwise it could not distinguish the historical data being passed. When the indicator is increasing, the market is accumulating. Conversely, when the indicator drops, the market is being distributed. Prices can reverse when the indicator crosses the zero line.