Advanced Volume Index (AVI)

Multi-factor volume strength analysis

Overview

Advanced Volume Index combines multiple volume-based indicators into a single composite score that measures overall volume strength: volume momentum, price-volume divergence, and volume trend. Provides comprehensive volume assessment.

Key Use: Get a complete picture of volume strength from multiple perspectives simultaneously.

Components

Volume Momentum (40%)

VROC or Force Index component

Price-Volume Divergence (30%)

Whether volume supports or opposes price move

Volume Trend (30%)

Whether volume expanding or contracting longer-term

Use Cases

Overall Volume Health

Single score shows complete picture of volume conditions.

Trend Strength Rating

High AVI during price move = strong conviction trend.

Risk Assessment

Low AVI on advance = risky trade; high AVI = confident.

Characteristics

✓ Advantages

  • • Comprehensive analysis
  • • Single actionable metric
  • • Multi-factor confirmation

⚠ Limitations

  • • Less useful individually
  • • Hides individual signals
  • • Custom weighting needed

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