BNBR Tick Chart with Trade Volume Index

TRADE VOLUME INDEX

Overview

The Trade Volume Index ("TVI") shows whether a security is being accumulated(purchased) or distributed (sold).

The TVI is designed to be calculated using intraday "tick" price data. TheTVI is based on the premise that trades taking place at higher "asking"prices are buy transactions and trades at lower "bid" prices are selltransactions.

Interpretation

The TVI is very similar to On Balance Volume. The OBV method works well withdaily prices, but it doesn't work as well with intraday tick prices. Tickprices, especially stock prices, often display trades at the bid or askprice for extended periods without changing. This creates a flat support orresistance level in the chart. During these periods of unchanging prices,the TVI continues to accumulate this volume on either the buy or sell side,depending on the last price change.

The TVI helps identify whether a security is being accumulated ordistributed. When the TVI is trending up, it shows that trades are takingplace at the asking price as buyers accumulate the security. When the TVI istrending down, it shows that trades are taking place at the bid price assellers distribute the security.

When prices create a flat resistance level and the TVI is rising, look forprices to breakout to the upside. When prices create a flat support leveland the TVI is falling, look for prices to drop below the support level.