Definition of 'Arms Index - TRIN'
A technical analysis indicator that compares advancing and declining stock issues and trading volume as an indicator of overall market sentiment. The Arms Index, or TRIN (Traders Index), is used as a predictor of future price movements in the market primarily on an intraday basis.
The Arms index is calculated as follows:
TRIN = (advancing issues/declining issues) (volume of advancing issues/ volume of declining issues)
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