Chapter X: Technical Analysis discovers the range of moods of investors toward RRD. |
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| For R.R. Donnelley & Sons Company, the Negative Volume Index is a well known indicator for market sentiment. The modern version of the indicator has received 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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How to read the Calibrated NVI for R.R. Donnelley & Sons Company: In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. 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 R.R. Donnelley & Sons Company 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 RRD while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. R.R. Donnelley & Sons Company 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. R.R. Donnelley & Sons Company 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 RRD stock prices. Also, roadmap and Summary of most effective indicators: |