The Slow Volume Strength Index by Vitali Apirine
Here’s a momentum volume oscillator that’s similar to the relative strength index (RSI), but there’s a difference. Let’s take a look at how this indicator works.
The slow volume strength index (SVSI) is a momentum volume oscillator that measures the change in buying and selling pressure relative to a price exponential moving average (EMA). I use J. Welles Wilder’s relative strength index (RSI) formula to calculate the SVSI. Similar to the RSI, the SVSI oscillates between zero and 100. SVSI is considered overbought when above 80 and oversold when below 20. The SVSI can also generate signals by looking for divergences and centerline crossovers. SVSI can be used to confirm the slow relative strength index (SRSI) on the same graph. I discussed the SRSI in my article “The Slow Relative Strength Index,” which appeared in the April 2015 issue of Technical Analysis of STOCKS & COMMODITIES.
To calculate the SVSI, I use the following formula:
SVSI = 100 – [100/(1 + SVS)]
SVS = Average positive volume/Average negative volume