Arms Short-Term Trading Index :Volume Weighted MovAvg Difference

Abbreviation: Arms Short-Term Index: VolWgtAvg Diff
Category: Market Advance / Decline
Input Parameters:

Name Range Default
Advancing Issues
Declining Issues
Volume of Advancing Issues
Volume of Declining Issues
Total Volume
VolWgtAvg1 Periods Int >= 1 5
VolWgtAvg2 Periods Int >= 1 10

 
Calculation:

VolWgtAvg(X, Total Volume, VolWgtAvg1 Periods) – VolWgtAvg(X, Total Volume, VolWgtAvg2 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 quantify movements in the Arms Short-Term Trading Index indicator by calculating the difference between two moving averages. Since it uses volume weighted moving averages (which give more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the indicator tends to focus more upon movement between periods of relatively higher volume than between periods of relatively lower volume.
 

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