S&P 500 Analysis & ETF Trading

[kiy]

$TRIN...stochTRIN

TRIN


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.

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)

TRIN is one of the most important keys in becoming a successful trader. TRIN is not a perfect indicator; before reading any further it is important that you first read the link below (especially page 2).
As noted in the definition...it is the "direction"...and trend of the TRIN that is more important.
http://www.onlinetradingconcepts.com/TechnicalAnalysis/ArmsIndexTRIN.html

Next. What the TRIN formula does is smooth out what is going on with the Market internals: advancing/declining stocks and the adv/declining volume. Also, a very unique advantage for traders when using TRIN is that TRIN re-sets itself each day.

***stochTRIN.
I would like to share with everyone my understanding of TRIN along with the stochastics of TRIN (the use of the stochastics applied to TRIN was first started by a good trading friend and very excellent trader named Ziko from Egypt)

***This is an indicator you will not find anywhere else but here and on the I-Hub site. You will not find a definition of this in John Murphy 's glossary on Stock Charts.com. You will find stochRSI defined in the glossary as; StochRSI is found by applying the Stochastics formula to RSI readings. All we have done is applied stochastics to the TRIN reading.
http://stockcharts.com/school/doku.php?id=chart_school:glossary_s

TRIN is not the easiest indicator to read and understand. What we have done with the stochastics of TRIN is let stochastics define changes of the intraday market internals with the use of the cross of the stochastics fast and slow lines and the use of the stochastics scale of 20 and 80 as relative change in the overall bias of the TRIN as it becomes more bullish or more bearish. You will also see on the 10 minute chart that we have done the same with a stochastics of the TICK indicator which is another intraday indicator of the Market internals. So, the TRIN shows the overall advancing declining stocks and the volume that goes with it. By applying a stochastics to TRIN it helps you better see this as it is happening on a real time chart.
Remember, 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.

Stochastics
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods.
According to an interview with Lane, the Stochastic Oscillator "doesn 't follow price, it doesn 't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price."

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
$NYA...TRIN
http://stockcharts.com/c-sc/sc?s=$TRIN&p=15&yr=0&mn=1&dy=4&i=p65906875483&a=177359065&r=337
5 minute
http://stockcharts.com/c-sc/sc?s=SPY&p=5&b=5&g=0&i=p44516783606&a=202434724&r=5361
http://stockcharts.com/c-sc/sc?s=$TRIN&p=5&yr=0&mn=0&dy=5&i=p49020446836&a=260197251&r=331
http://stockcharts.com/c-sc/sc?s=$SPX&p=10&b=5&g=0&i=p73927284707&a=204070237&r=8484
10 minute
http://stockcharts.com/c-sc/sc?s=$SPX&p=10&b=5&g=0&i=p73927284707&a=204070237&r=8484
http://stockcharts.com/c-sc/sc?s=$TRIN&p=10&b=5&g=0&i=p67055513884&a=276974787&r=1347247129941
http://stockcharts.com/c-sc/sc?s=$TRIN&p=10&b=5&g=0&i=p91833320412&a=276966322&r=1347240861754
http://stockcharts.com/c-sc/sc?s=$TICK&p=10&yr=0&mn=0&dy=5&i=p90002447059&a=276975286&r=1347247917551
15 minute
http://stockcharts.com/c-sc/sc?s=$TRIN&p=15&b=5&g=0&i=p38121756286&a=242159824&r=1868
http://stockcharts.com/c-sc/sc?s=$TRIN&p=15&b=5&g=0&i=p06974468056&a=278376846&r=1348322099161
http://stockcharts.com/c-sc/sc?s=$TICK&p=15&yr=0&mn=0&dy=5&i=p04778290465&a=276645950&r=1346967911557

$TRIN...stochTRIN