List of Financial Market Terms

An Arms Index (also known as Traders Index...TRIN for short) is an indicator calculating breadth of a stock in stock trading.  TRIN is established by dividing advancing/declining issues by the volume of advancing issues/volume of declining issues:

Arms Index (TRIN)

In general, a reading above 1.00 is bearish and a reading below 1.00 is bullish.  If it's sitting at 1.00, it's a neutral reading. TRIN is used to give Trader's an idea as to the sentiment in the market.

The chart below shows a 5 day chart of TRIN. Note the whipsaw action that takes place.

TRIN Traders Index Arms Index

Related terms: Market Breadth, Bollinger Bands, Parabolic SAR, Target, Technical Analysis

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