Arms Index (TRIN)

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arithmetic mean
arm's length price
arm's length transaction
Armenia Dram
Arms Index
Arms Index (TRIN)
arrearage
arrears
ARS
Articles of Association
Articles of Incorporation

Arms Index (TRIN)

The Arms Index, also referred to as TRIN, was developed in 1967 by Richard Arms. The Index shows whether volume is flowing into advancing or declining stocks by analyzing the relationship between advancing and declining issues and their respective volume.

The Index is calculated using the following formula:

TRIN=

(Advanding Issues/Declining Issues)
Volume of Advancing Issues/Volume of Declining Issues)

The result of this formula is then smoothed by a simple moving average.

Generally, the greater the traded volume the more we can expect the existing trend to continue rather than reverse. The market is considered neutral when the Index equals 1, since the up volume is evenly distributed over the advancing issues and the down volume is evenly distributed over the declining issues. The indicator is considered bullish when it is below 1.0 and bearish when it is above 1.0.