ShmoopTube

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finance a la shmoop what is the Arms Short Term Trading Index not to be

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confused with the short arms term trading index a run by this guy all [Man with dinosaur for a head sitting at a desk]

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right Richard Arms invented it in the 70s and then a journalist cleverly

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renamed it Trin.... short for trading index very clever

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yeah well Trin as in Rin Tin is just an index for the advanced decline ratio in

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the stock market and if you haven't seen our video on it oh well you should we've

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had George Clooney of fortune so directed the computation of the Trin [George Clooney directing a show]

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looks like this Trin equals advanced issues divided by declining issues all

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over advanced volume divided by declining volume....

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So note that this equation maps volume as an element of the computation so it's

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meaningfully more useful than just the vanilla advanced decline ratio and hey [Man discussing equation]

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just keeping it real their advanced decline ratio we love you but you're [Advanced decline ratio laying on sofa eating doughnuts]

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just not as good all right well so if we compute things we get a value of 1 and

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well that's good or rather a bullish sign that the market "wants to go

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up" above one is bearish and at premiums of 30 40 50 percent ie [Bear walking by a river]

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calculations of 0.5 very bullish to 1.5 very bearish well those are signs that

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have been validated by actual market performance over time well why would we

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care about this calculation in the first place, well if we get the answer right as [Man staring at a crystal ball]

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to where the markets going well you know we can make a fortune

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yeah ask Warren Buffett... [Warren eating dinner]

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