|
|
Can the TRIN indicator identify overbought/oversold levels?
|
AT-May 2006-10
|
|
The TRIN compares the number of advancing issues to declining issues, relative to advancing/declining volume. Do TRIN extremes correspond to turning points?
|
Detailed Description
 Market Pulse: Stock market patterns and tendencies, Vol. 1
The TRIN (or Arms Index) is a momentum indicator that compares the ratio of advancing/declining stocks to the volume of advancing/declining stocks. Developed by Richard J. Arms in 1967, the TRIN is designed to track bullish and bearish momentum and indicate potential oversold and overbought levels.
To calculate the TRIN, divide the ratio of advancing stocks to declining ones by the ratio of advancing stock volume to declining stock volume.
|
|
|