Arms Index (TRIN)
The Arms Index, also known as the Trading Index (TRIN), is a technical analysis tool used to measure the relative strength of the stock market. It is calculated by dividing the number of advancing stocks by the number of declining stocks, and then dividing that number by the total volume of stocks traded. The Arms Index is used to determine whether the market is overbought or oversold, and can be used to identify potential buying and selling opportunities.
History of the Arms Index
The Arms Index was developed by Richard Arms in 1967. He was a technical analyst who believed that the stock market was driven by the emotions of investors. He developed the Arms Index as a way to measure the sentiment of the market and to identify potential buying and selling opportunities. The Arms Index is still used today by technical analysts to identify potential market trends.
Comparison Table
| Arms Index | Description |
|---|---|
| Below 0.8 | Market is oversold |
| Above 1.2 | Market is overbought |
Summary
The Arms Index, also known as the Trading Index (TRIN), is a technical analysis tool used to measure the relative strength of the stock market. It is calculated by dividing the number of advancing stocks by the number of declining stocks, and then dividing that number by the total volume of stocks traded. The Arms Index is used to determine whether the market is overbought or oversold, and can be used to identify potential buying and selling opportunities. For more information about the Arms Index, you can visit Investopedia, The Balance, and MarketWatch.
See Also
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- Bollinger Bands
- On Balance Volume (OBV)
- Average Directional Index (ADX)
- Stochastic Oscillator
- Price Volume Trend (PVT)
- Accumulation/Distribution Line (ADL)
- Chaikin Money Flow (CMF)
- Commodity Channel Index (CCI)
