Forum Archive Index - December 2000

["Ian Rawnsley" <ianr@ie3.co.nz>]

Title:

You may have heard about it from someone who uses software such as MetaStock, AIQ etc.

 

Abridged from the AIQ Manual:

 

"Negative Volume Index (N-Vol)

 

This is an index of price action during periods of decreasing volume.  A cumulative index, on days of decreasing volume the percentage gain (or loss) of the ticker price is added to (or subtracted from) the index. 

 

The Negative Volume indicator is based on the premise that smart money investors buy in periods of relative low volume, prior to price movements.  The unsophisticated investor, on the other hand, will buy when the movement has already started, typically on busy days.  As a result, analysis of the Negative Volume indicator’s buy signals suggest an early movement in the price of a ticker. 

 

Note
The Negative Volume indicator is a summation indicator, and the actual values will depend upon how many total periods of data are available for accumulation.  However, the actual value of this indicator is not important.  Important is the shape of the plot, which can show trends and trend breaks, and nonconformations and divergences with price action of the ticker."

 

Ian Rawnsley

-----Original Message-----
From: owner-sharechat@sharechat.co.nz
[mailto:owner-sharechat@sharechat.co.nz]On Behalf Of Thabu Pienaar
Sent: Friday, December 15, 2000 5:11 AM
To: sharechat@sharechat.co.nz
Subject: [sharechat] Smart Money


sHi

I've read somewhere about "smart money" - that is investors who invest
before the public investors jump on the band wagon.

Is there such a thing?
Is there a way to work out or see when smart money is investing before the
general public investors invest?
Is there a technical analysis which will indicate such a flow in of money?

Thanks

Thabu Pienaar