TRIN or ADS

Vicorka

Active member
246 7
What on your opinion is better TRIN or ADS (Advance/decline sentiment)?
http://www.marketvolume.com/technicalanalysis/advancedeclinesentiment.asp

Both indicators are Breadth indicators and are based on the number of advance/decline stocks and advance/decline volume. Basically, both indicator perform the same analysis of the market sentiment when applied to the market indexes.

In summary
1. TRIN is old, well known and quite popular - ADS is new and barely known
2. TRIN is contrarian indicator - ADS is straight indicator.
3. TRIN oscillates around 1 in the range from 0 to infinity - ADS moves around 50 in the range from 0 to 100
4. Since TRIN oscillates from 0 to infinity critical (overbought/oversold) levels for NYSE Composite, Russell 2000, S&P 500, Nasdaq 100 and DJI would be different (different number of stocks) - it does not happens with ADS as it moves like Stochastics from 0 to 100.
5. It is quite complicated mathematically to combine TRIN with other technical indicators (contrarian and oscillates around 1) - it could be done much easier with ADS as it moves and it is analyzed as many most popular technical studies.
 
 
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