SF - Negative market data index

An improved variation of the classic NVI volumetric analysis indicator. Compare price dynamics and a range of market data

Negative market data index (NMDI) is an indicator used in technical analysis, which gives signals about price dynamics based on negative changes in certain market data. NMDI helps to assess trend strength and potentially confirm price reversals.

The indicator represents two lines:

  • NMDI;

  • NMDI moving average.

NMDI is based on price movements based on whether the current value of the market data being tracked is lower than the previous period. If the market data parameter being tracked does not decrease from one period to the next, the NMDI remains the same.

NMDI is calculated according to the formula:

![![](../../.gitbook/assets/image (108).png)

NMDI calculation formula


where NMDI(t) is the NMDI at time t, data(t) is the tracked market data parameter at time t, Close(t) is the closing price at time t.

The user has the ability to change the values of the following parameters:

  • Initial value - the starting value from which the calculation begins. This parameter affects the dimensionality of the scale. The default is 100;

  • Market data input - type of market data to track. Can take values: "Volatility", "Price manipulation", "Volume", "Volume manipulation", "Orderflow speed", "CVD" cumulative delta of trading volume, "Open interest", "Premium index", "Funding", "Index correlation";

  • Signal smoothing type - type of moving average calculated for NMDI. Can take the following values: "SMA" (simple moving average), "EMA" (exponential moving average), "WMA" (weighted moving average), "VWMA" (volume weighted moving average), "LSMA" (linear regression moving average);

  • Length - moving average period;

  • Index ticker - ticker of the asset, which is used as an index (used when Market data input parameter value = "Index correlation" is selected). Default value is "BTCUSDT"

The user has the ability to customize the graphical display of the indicator. Available for customization:

  • display colors and transparency of NMDI, moving average, as well as filling of the contour formed by NMDI and moving average (by default - if NMDI is larger than moving average, the indicator chart is colored in green. if it's less than that, it's red. Line transparency - 0%, fill transparency - 50%);

  • type of line display. The standard display types available are TradingView.

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