The TRIN, or Arms index, developed by Richard Arms in the 1970s, is a short-term
technical analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the sam ...
stock market
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as ...
trading indicator based on the
Advance-Decline Data.
The name is short for TRading INdex. The index is calculated as follows:
:
A value below 1 usually indicates
bullish
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated Market trends, price development in a market. This attitude is the accumulation of a variety of fundamental analysis, fundamenta ...
sentiment, and a value above 1 –
bearish
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including ...
. A reading reaching 1.5 is very bearish. The index was introduced by Richard Arms, and is continuously displayed during trading hours, among other indices, on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
's central wall display for the stocks traded on that exchange.
The denominator of the index is calculated based on number of shares traded, not their dollar value. Therefore, a highly traded stock with a low share price will affect the index more than the same dollar volume traded in a higher-priced stock.
References
External links
How to interpret the TRIN technical indicatorat OnlineTradingConcepts.com
Investopedia - Arms Index - TRIN
Market indicators
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