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Friday, July 20, 2012

Chart TRIN (Arms Short-term Trading Index)

TRIN can be added to Charts through the Lower Indicators menu within Options.  Simply select TRIN from the drop down menu. 
Developed by Richard W. Arms, Jr., TRIN is a breadth indicator which measures and compares strength of market advances and declines based upon volume. At any moment during the trading day, TRIN can be computed for a particular market by dividing the ratio of advancing issues to declining issues by the ratio of advancing volume to declining volume. Indicator values less (greater) than one are bullish (bearish), indicating more volume is flowing into (out of) advancing issues as compared to declining issues. TRIN can be applied to end of day data, but its intraday applications are more commonly used.
Interpretation: Buy (sell) when TRIN falls below (rises above) one.


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