Tuesday, September 11, 2012 7:59:03 AM
StochTrin, 10 min, With Edit by Kiy,,
TRIN...stochTRIN
The Arms Index , also know as the TRIN - "TRading INdex"
If you're going to Swing Trade/daytrade it is important that you master the Arms Index. A very unique quality of the TRIN indicator for traders is that it resets each day based on the market internals.
TRIN is the market internals = advancing/declining stocks and the volume that goes with them...The formula for the Arms Index is simply:(Advancing Issues / Declining Issues) / (Advancing Volume / Declining Volume)
I would like to share with everyone my understanding of TRIN along with the stochastics of TRIN.
The stochTRIN is an indicator you will not find anywhere else but here and on the I-Hub site. It is simply the stochastics formula applied to the TRIN the same as the stochRSI is the stochastics applied to the RSI.
On the intraday charts you can see frequent signals of the TRIN and stochTRIN indicators and often you may consider some of these signals as HFT programs that have triggered.
TRIN is not the easiest indicator to read and understand. You have to think in reverse of how you are used to reading most technical indicators. When reading the TRIN and the stochastics of TRIN...a high TRIN reading such as 2.50 = market internals and price are extended to the downside...low TRIN reading such as 0.30 = market internals and price are extended to the upside. Some may want to say this in another way; as "relatively over extended or relatively overbought/oversold.
Stochastic of the TRIN =THINK in reverse also= a 20 or lower stochTRIN reading means market is extended to the upside...stochTRIN above 80=market is extended to the downside.
TRIN...stochTRIN
The Arms Index , also know as the TRIN - "TRading INdex"
If you're going to Swing Trade/daytrade it is important that you master the Arms Index. A very unique quality of the TRIN indicator for traders is that it resets each day based on the market internals.
TRIN is the market internals = advancing/declining stocks and the volume that goes with them...The formula for the Arms Index is simply:(Advancing Issues / Declining Issues) / (Advancing Volume / Declining Volume)
I would like to share with everyone my understanding of TRIN along with the stochastics of TRIN.
The stochTRIN is an indicator you will not find anywhere else but here and on the I-Hub site. It is simply the stochastics formula applied to the TRIN the same as the stochRSI is the stochastics applied to the RSI.
On the intraday charts you can see frequent signals of the TRIN and stochTRIN indicators and often you may consider some of these signals as HFT programs that have triggered.
TRIN is not the easiest indicator to read and understand. You have to think in reverse of how you are used to reading most technical indicators. When reading the TRIN and the stochastics of TRIN...a high TRIN reading such as 2.50 = market internals and price are extended to the downside...low TRIN reading such as 0.30 = market internals and price are extended to the upside. Some may want to say this in another way; as "relatively over extended or relatively overbought/oversold.
Stochastic of the TRIN =THINK in reverse also= a 20 or lower stochTRIN reading means market is extended to the upside...stochTRIN above 80=market is extended to the downside.
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