OPEN-10 TRIN
Overview
The Open-10 TRIN is a smoothed variation of the Arms Index. It is a market breadth indicator that uses advancing/declining volume and advancing/declining issues to measure the strength of the market.
Interpretation
The interpretation of Open-10 TRIN (also called the Open Trading Index) is similar to the interpretation of the "normal" TRIN.
Readings above 0.90 are generally con-sidered bearish and readings below 0.90 are considered bullish.
The following table was reprinted from Peter Eliades' Stock Market Cycles. It shows what the DJIA did after the 10-day TRIN rose above the level of one. Impressive...
I created a similar table for the period 1985 through 1988. The table appears below.
Calculation
The Open-10 TRIN is calculated by keeping a 10-day total of each of the TRIN's components before performing the TRIN calculation.
