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Strategies & Market Trends : Waiting for the big Kahuna

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To: kas1 who wrote (13155)1/14/1998 12:11:00 AM
From: Michael Bakunin  Read Replies (1) of 94695
 
Named for the fella who invented it, Richard Arms. His formula is:
(Advancing Issues / Declining Issues) / (Advancing Volume / Declining Volume)

I prefer to rearrange it to (DVol/Dec) / (UVol/Adv) -- average down stock volume to avg. up stock volume.

On Friday, as the indexes sunk, all the volume was down stocks (which, granted, was most stocks), and TRIN hit 4: the down stocks had traded an average of 4 shares to up stocks' one. I think it's supposed to be a short-term trading tool, but I like it as an indicator of sentiment.
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