Chapter X: The mood of the market toward Rovi Corporation show up in the Daily Closing Altitude and other Sentiment Indicators. |
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| For Rovi Corporation, the Negative Volume Index is a well known indicator for market sentiment. Here the Indicator Plot is the Calibrated NVI which incorporates several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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Interpreting the Calibrated NVI for Rovi Corporation: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
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| Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for Rovi Corporation covers the few years before the start of the chart at the top of the page. |
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| Values above the midline indicate that day traders have positive feelings toward ROVI while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. Rovi Corporation stock prices are shown in red. |
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| Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Rovi Corporation share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns. |
Influence of Investor Sentiment on ROVI stock prices. Also, roadmap and Summary of most effective indicators: |