The Arms’ Index (TRIN) calculates the ratio of two indicators: the Advance/Decline Ratio to the Upside/Downside Ratio. It shows whether volume is moving into advancing or declining issues.
Values below 1.0 indicate more volume in advancing issues, while values above 1.0 indicate more volume in declining issues. Values over 1.2 indicate oversold conditions, values under 0.7 indicate overbought.
A 10 period moving average of the Arms Index is often used.
Also known as Short-term Trading Index, this indicator was developed by Richard W. Arms, Jr. in 1967.
Calculation:
ADV = The number of advancing issues
DEC = The number of declining issues
UPV = The total volume of the securities with a higher closing price of the previous closing price
DNV = The total volume of the securities with a lower closing price of the previous closing price
Inputs:
Group = XU100
Indicates the portfolio, group or index.
Indicator Type: Market Breadth