Abbreviation: Arms Short-Term Index: Avg Diff
Category: Market Advance / Decline
Input Parameters:
| Name | Range | Default |
| Advancing Issues | ||
| Declining Issues | ||
| Volume of Advancing Issues | ||
| Volume of Declining Issues | ||
| Avg1 Periods | Int >= 1 | 5 |
| Avg2 Periods | Int >= 1 | 10 |
Calculation:
Avg(X, Avg1 Periods) – Avg(X, Avg2 Periods)
where
X = Arms Short-Term Trading Index(Advancing Issues, Declining Issues, Volume Advancing Issues, Volume Declining Issues)
Arms Short-Term Trading Index represents Arms Short-Term Trading Index (TRIN)
Avg represents Simple Moving Average
Discussion:
This indicator attempts to quantify movements in the Arms Short-Term Trading Index indicator by calculating the difference between two moving averages. Since it uses simple moving averages (which give equal importance to all the periods within the moving average’s time frame), the indicator treats all periods alike, and does not focus more upon movement between recent or relatively higher volume periods as do the exponential and volume weighted variants.