TRIN - Traders Index

_coda

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Tharp's Trade your way to Financial Freedom discusses the Traders Index (TRIN) briefly.

"This is the ratio of advances to declines divided by the ratio of up volume to down volume. ... Use a moving average of the ARMS Index (typically use about 5 days)."

I understand the ratio of up volume up to down volume, but I'm not sure about the ratio of advances to declines, and how this would be calculated.

Would this be a strict numerical count of stocks that have advanced to those that have declined?

And based on what time interval - daily, or arbitrary ranges like the 5 days as above?

TRIN is mentioned in several posts as a standard indicator. Probably the most detailed description is in this post,
http://www.trade2win.com/boards/showpost.php?p=10781&postcount=3 .

This post also discusses TRIN as a value ranging around 100. Tharp talks about .8 to 1.2.

Anyone have some input here?
 
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