The IVI curve
(purple) is the Indicant Volume Indicator. It is not the actual volume of shares traded
on the exchange, but a statistical representation of those shares. When it
in a downward direction, the market's movement is not robust.
Conversely, when it is moving up, the market is robust. A market can be robust in
either a bullish or bearish mode. A market is not robust when volume is passive.
Passive volume is when the Indicant Volume Indicator is moving down or when it
is down relative to previous highs.
Great bull markets generally require robust volume,
but not always as the stock market bull from 2009-2013 was a low volume
bull. However, even low volume markets endure directional shifts in that
volume. Such shifts are an important part of recognition systems in
detecting directional changes in the stock market.
Robust volume when the market is going down implies a deep and long lasting bear
market. It is always important to differentiate cycles from trends. These charts
help you do this.