ArmsIndexNYSE

Description

The Arms Index, or TRIN index, was developed by Richard W. Arms. The index is calculated by dividing Advancing Issues by Declining Issues (numerator), and by dividing Advancing Volume by Declining Volume (denominator). You then divide the first quotient by the second quotient.

A value of 1 indicates the ratio of up volume to down volume is equal to the ratio of advancing issues to declining issues. Hence, a value of 1 represents a neutral market. Values less than 1 are thought to be bullish, and values above one are said to be bearish.

Formula

ArmsIndexNYSE(SERIES)=begin

  retval = NONUM

  if ISSU_H != NONUM AND DVOL != NONUM AND ISSU_L != NONUM AND UVOL != NONUM then begin

    numerator = ISSU_H / ISSU_L

    denominator = UVOL / DVOL

    retval = Divide(numerator, denominator)

    end

  retval

end

Note that the symbols embedded in the formula vary from feed to feed.

Parameters

SERIES

The SERIES directive makes this formula available as a Formula Study. SERIES refers to the instrument in a chart. SERIES does not become a study parameter.

Return Value

A NYSE-based Arms Index value.

Examples

Comments

If more Advancing Issues have more volume, the index falls below 1.0. Similarly, if Declining Issues have more volume, the index rises above 1.0.