Cumulative Volume Index (CVI) is a one of forex technical indicator often used in forex technical analysis. Cumulative Volume Index (CVI) resembles On Balance Volume, or OBV, in some respects. Both indexes were developed to demonstrate if volume is flowing into or out of the market.

Cumulative Volume Index (CVI) is a momentum indicator that gauges the movement of funds into and out of the entire. By showing the direction of volume flow, the CVI is very similar to OBV. The difference between the two indicators is in the actual methods of calculation. CVI uses actual up and down volume statistics while OBV generalizes the closing prices of a particular security.

CVI can be useful in determining the overall trend and its starting point. Any divergences between the CVI and the market index are indicators of a future correction.

The Cumulative Volume Index (CVI) is useful for determining whether money is flowing into or out of the market. When more volume is associated with advancing stocks (those increasing in price) than declining, the value increases. When more volume is associated with declining stocks, the value decreases.

The CVI can be compared to current price trends to determine if there is support for those trends. For example, when prices are increasing, but the CVI is decreasing, a decreasing amount of volume is participating in the price increasing. Therefore, the price trend will typically begin to reverse.

In general, broad market indicators can be used for trading against broad market indices through options, futures, and mutual funds. They can also be used to increase the effectiveness of more specific signals by adding confirmation or warning of upcoming trends.