Arms Index (TRIN)

The Arms Index calculates the ratio of 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. A 10 period moving average of the Arms Index is often used. Values over 1.2 indicate oversold conditions, values under 0.7 indicate overbought.

The Arms Index is also known as the short-term TRading INdex or TRIN.

The Arms Index was developed by Richard W. Arms, Jr. in 1967. See also Arms Ease of Movement indicator.

Formula:




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