Investopedia explains 'STIX'
The STIX is calculated by taking a 21-period exponential moving average of a variation of the Advance/Decline ratio.
The formula is: STIX = (A/D Ratio x 0.09) + (Previous STIX x 0.91), where the A/D Ratio represents advancing stocks as a percentage of all stocks (advancing plus declining).
Technical traders may be inclined to buy when the STIX drops to 45 or below and sell when the STIX reaches 56 or above, unless the markets are in a state of extreme bearishness or bullishness, respectively.
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