Stocks Crossing The 13 Week Moving Average <$10.01 Message Board

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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: DOUG H who wrote (7142)	12/17/2000 7:17:05 PM
From: James Strauss	Read Replies (1) of 13094

Doug: Here is a brief explanation of TRIN.... Jim Arms Short Term Trading Index - TRIN The calculation of TRIN is the ratio of the number of advancing issues to the number of declining issues divided by the ratio of the volume of the advancing issues to the volume of declining issues. New York Stock Exchange daily data is used in the calculation. (advancing issues/declining issues) divided by (volume of advancing issues/volume of declining issues) Arms Ease of Movement measures the relative strength of the volume associated with advancing stocks and conversely, with declining stocks. At a level of 1.00 the market is in balance. Readings above 1 indicate that more volume is moving into declining stocks. A reading below 1 indicates that more volume is moving into advancing stocks. On the technical analysis software program I use, TRIN is in balance at 100 and fluctuates above and below that mark. Some programs use 1 and others 100. No big deal. Just be aware of it. I have found that this indicator is somewhat reliable when it reaches the extremes. That is, above 1.300 and below .400 I find it to relate a strong tendency in the market. However, at these extremes, it becomes obvious what's happening by looking at what's going on in the market. Therefore, it is fair to say that I don't use this indicator much on daily data. However, I have used this indicator to forecast intra day S&P futures direction. I use it in the following manner. I decide on the number of intra day bars to use. Then I use moving average envelopes with about a 10% deviation from a simple moving average. When the bars hit the moving average band, it seems to be a reliable indication that the move has gone too far too fast. I have then found that the futures move in the other direction and close in on the simple moving average line. I have used this technique to trade S&P futures at the extremes for a bounce up or down. I also don't look to pick up more than 12 ticks or 60 points. e-analytics.com

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