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$TRIN ?






If TRIN is above2.0 on close Expect rare Contrary Market Move
As a ratio of two indicators, the Arms Index reflects the relationship between the AD Ratio and the AD Volume Ratio. The TRIN is below 1 when the AD Volume Ratio is greater than the AD Ratio and above 1 when the AD Volume Ratio is less than the AD Ratio. Low readings, below 1, show relative strength in the AD Volume Ratio. High readings, above 1, show relative weakness in the AD Volume Ratio. In general, strong market advances are accompanied by relatively low TRIN readings because up-volume overwhelms down-volume to produce a relative high AD Volume Ratio. This is why the TRIN appears to move ?inverse? to the market. A strong up day in the market usually pushes the Arms Index lower, while a strong down day pushes the Arms Index higher. As you can see in the calculation above and in the corresponding chart below, the AD Volume Ratio surged to 7.17 as up-volume far exceeded down-volume. This produced a TRIN value well below 1 (.42). Similarly, strong declines are usually accompanied by relatively high TRIN readings because down-volume swamps up-volume. In the example above, the AD Volume Ratio plunged to .05 as down-volume crushed up-volume. This produced a TRIN value well above 1 (3.00). Extreme readings in the AD Volume Ratio usually produce extreme TRIN readings.