Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (52892)	6/2/2000 2:22:00 PM
From: Saulamanca	Read Replies (1) \| Respond to of 99985

Heinz, It`s really hard to get an accurate read on the market using TRIN. TRIN is calculated: (advancers/decliners) / (advancing volume/declining volume) Readings of less than 1.00 are bullish. Readings of more than 1.00 are bearish. Day 1: 1000 advancers, 100 decliners, with 1,000,000 shares up volume and 100,000 shares down volume. TRIN = (1000/100)/(1,000,000 /100,000) = 10/10=1.00. Day 2: 100 advancers, 1000 decliners, with 100,000 shares up volume and 1,000,000 shares down volume. TRIN = (100/1000)/(100,000/1,000,000) = 0.1/0.1 = 1.00. On Day 1, bullish day but the TRIN was neutral. On Day 2, bearish day but the TRIN was neutral. Day 3: 1000 advancers, 100 decliners, with 1,000,000 shares up volume and 200,000 shares down volume. TRIN = (1000/100)/(1,000,000/200,000) = 10/5 = 2.00. Day 4: 100 advancers, 1000 decliners, with 200,000 shares up volume and 1,000,000 shares down volume. TRIN = (100/1000)/(200,000/1,000,000) = 0.1 /0.2 = 0.50. On Day 3, a bullish day but the TRIN was very bearish. On Day 4, a bearish day but the TRIN was very bullish.