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short-term trading index aka TRIN
This evaluates buying and selling pressure. Specifically it measures the amount of volume going into advancing stocks versus the amount of volume going into declining issues. The formula is:
TRIN=(#of advancing issues/# of declining issues)
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(upside volume/downside volume)

A TRIN between .65 and .90 is a bullish sign for the short term. A reading below .65 is considered very bullish. A reading between .90 and 1.10 is considered neutral, any reading above 1.10 is bearish. TRIN can be used to help time your purchases. Example-if TRIN is bullish you might want to place your "ask" slightly above the "bid". If the TRIN is bearish you might wish to place market orders as it is unlikely you will receive a better price by waiting.
as of today, March 24 the TRIN is .55 for the NYSE and 1.46 for the NASDAQ.
TRIN works best when combined with the New High-New Low index. If TRIN becomes oversold while NH-NL reaches a new low it shows the bears are strong. If TRIN becomes overbought but NH-NL rises to a new high, it shows strong leadership in bulls and the uptrend is likely to continue.
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