ARMS Index (TRIN)
Purpose of the ARMS index is to gauge whether there’s volume in rising or falling stocks.
A short-term techncial analysis breadth indicator calculated as the following:
TRIN stands for TRaders’ INdex.
Investopedia explains Arms Index – TRIN A ratio of 1 means the market is in balance; above 1 indicates that more volume is moving into declining stocks (bearish); and below 1 indicates that more volume is moving into advancing stocks (bullish). This indicator was developed by Richard Arms.