Overhauling Market Breadth by Jacobus R. van den Brink
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:12 (62-65): Overhauling Market Breadth by Jacobus R. van den Brink
A transformation of the Arms index and its components saves screen space and provides additional insight into market breadth.
Most index traders are familiar with the Arms index (TRIN), which measures the average volume per declining issue relative to the average volume per advancing issue, where comparison is made to yesterday's close:
TRIN = (DNVOL / DECL) / (UPVOL /ADVN)
DNVOL = Total volume of declining issues ("down volume")
DECL = Total number of declining issues ("decliners")