TRIN (finance)
Encyclopedia
The TRIN, or Arms index, is a short-term technical analysis
stock market
trading indicator. The name is short for TRading INdex. The index is calculated as follows:
A value below 1 usually indicates bullish
sentiment, and a value above 1 – bearish
. A reading reaching 1.5 is very bearish. The index was introduced by Richard Arms, and is continuously displayed during trading hours, among other indices, on the New York Stock Exchange
's central wall display for the stocks traded on that exchange.
It is important to note that the index is calculated based on number of shares traded, not their dollar value. Therefore, a highly-traded stock with a low share price will affect the index more than the same dollar volume traded in a higher-priced stock.
Technical analysis
In finance, technical analysis is security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis incorporate technical analysis, which being an aspect of active management stands...
stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
trading indicator. The name is short for TRading INdex. The index is calculated as follows:
A value below 1 usually indicates bullish
Market trends
A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames...
sentiment, and a value above 1 – bearish
Market trends
A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames...
. A reading reaching 1.5 is very bearish. The index was introduced by Richard Arms, and is continuously displayed during trading hours, among other indices, on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
's central wall display for the stocks traded on that exchange.
It is important to note that the index is calculated based on number of shares traded, not their dollar value. Therefore, a highly-traded stock with a low share price will affect the index more than the same dollar volume traded in a higher-priced stock.