Originator of the negative and positive volume indexes
Paul Dysart
Paul L. Dysart Jr., an Iowa native who worked on Chicago's LaSalle Street, published the weekly Trendway letter from 1933 to 1969. In 1936 he began keeping separate advance-decline series for days of falling and of rising volume; he called the falling-volume series AMOMET, 'A Measure Of Major Economic Trend', the ancestor of today's NVI.
What they argue
- Market action on quiet, falling-volume days should be tracked separately from action on busy days.
- The falling-volume series is a guide to the major trend, hence his name for it, 'A Measure Of Major Economic Trend'.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Fosback's Negative Volume Index above its one-year average
Rule and full recordVolume & money flow · daily · with Norman Fosback
A price index that moves only on days when volume shrinks, on the theory that quiet days show what informed investors are doing. Hold the stock while that index is above its one-year average.
Best risk-adjusted results against buy and hold: