Abbreviation: Arms Short-Term Index: VolWgtAvg
Category: Market Advance / Decline
Input Parameters:
| Name | Range | Default |
| Advancing Issues | ||
| Declining Issues | ||
| Volume of Advancing Issues | ||
| Volume of Declining Issues | ||
| Total Volume | ||
| VolWgtAvg Periods | Int >= 1 | 5 |
Calculation:
VolWgtAvg(X, Total Volume, VolWgtAvg 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)
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to smooth the Arms Short-Term Trading Index indicator by calculating its moving average. Since it uses a volume weighted moving average (which gives more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the smoothing is influenced more by periods of relatively higher volume than by periods of relatively lower volume.