Technical Analysis from A to Z
by Steven B. Achelis
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...
| Table 9 | ||
| 1st Reading > 1.0 | Days to Final Low | Next Market Move |
|---|---|---|
| May 23, 1984 | 3 | 60-point rally |
| June 15, 1984 | 1 | 63-point rally |
| July 20, 1984 | 3 | 165-point rally |
| October 10, 1984 | 0 | 88-point rally |
| November 16, 1984 | 1 | 45-point rally |
| December 5, 1984 | 3 | 69-point rally |
| January 3, 1985 | 1 | 130-point rally |
| March 15, 1985 | 1 | 48-point rally |
| April 30, 1985 | 2 | 96-point rally |
| June 19, 1985 | 3 | 78-point rally |
I created a similar table for the period 1985 through 1988. The table appears below.
| 1st Reading > 1.0 | Days to Final Low | Next Market Move |
|---|---|---|
| June 19, 1985 | 0 | 60-point rally |
| January 8, 1986 | 2 | 302-point rally |
| April 30, 1986 | N/A | 16 point rally |
| July 15, 1986 | 0 | 41-point rally |
| September 11, 1986 | 1 | 141-point rally |
| January 2, 1987 | 0 | 445-point rally |
| October 15, 1987 | 2 | 289-point rally |
| November 13, 1987 | 4 | 68-point rally |
| November 27, 1987 | 5 | 285-point rally |
| January 14, 1988 | 5 | 285-point rally |
| February 8, 1988 | 5 | 79-point rally |
| March 11, 1988 | 0 | 53-point rally |
| April 4, 1988 | 0 | 127-point rally |
| May 12, 1988 | 0 | 39-point rally |
| May 17, 1988 | 4 | 211-point rally |
| July 1, 1988 | N/A | 78-point rally |
| August 12, 1988 | 7 | 111-point rally |
| November 16, 1988 | 0 | 309-point rally |
| October 30, 1989 | 5 | 171-point rally |
| December 18, 1989 | 2 | 109-point rally |
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.
Contents
- Preface
- Acknowledgments
- Terminology
- To Learn More
- Bibliography
- About the Author
- Technical Analysis
- Price Fields
- Charts
- Support & Resistance
- Trends
- Moving Averages
- Indicators
- Market Indicators
- Line Studies
- Periodicity
- The Time Element
- Conclusion
- Absolute Breadth Index
- Accumulation/Distribution
- Accumulation Swing Index
- Advance/Decline Line
- Advance/Decline Ratio
- Advancing-Declining Issues
- Advancing, Declining, Unchanged Volume
- Andrews' Pitchfork
- Arms Index
- Average True Range
- Bollinger Bands
- Breadth Thrust
- Bull/Bear Ratio
- Candlesticks - Japanese
- CANSLIM
- Chaikin Oscillator
- Commodity Channel Index
- Commodity Selection Index
- Correlation Analysis
- Cumulative Volume Index
- Cycles
- Demand Index
- Detrended Price Oscillator
- Directional Movement
- Dow Theory
- Ease of Movement
- Efficient Market Theory
- Elliott Wave Theory
- Envelopes (Trading Bands)
- Equivolume/Candlevolume
- Fibonacci Studies
- Four Percent Model
- Fourier Transform
- Fundamental Analysis
- Gann Angles
- Herrick Payoff Index
- Interest Rates
- Kagi
- Large Block Ratio
- Linear Regression Lines
- MACD
- Mass Index
- McClellan Oscillator
- McClellan Summation Index
- Median Price
- Member Short Ratio
- Momentum
- Money Flow Index
- Moving Averages
- Negative Volume Index
- New Highs-Lows Cumulative
- New Highs-New Lows
- New Highs/Lows Ratio
- Odd Lot Balance Index
- Odd Lot Purchases/Sales
- Odd Lot Short Ratio
- On Balance Volume
- Open Interest
- Open-10 TRIN
- Option Analysis
- Overbought/Oversold
- Parabolic SAR
- Patterns
- Percent Retracement
- Performance
- Point & Figure
- Positive Volume Index
- Price and Volume Trend
- Price Oscillator
- Price Rate-of-Change
- Public Short Ratio
- Puts/Calls Ratio
- Quadrant Lines
- Relative Strength, Comparative
- Relative Strength Index
- Renko
- Speed Resistance Lines
- Spreads
- Standard Deviation
- STIX
- Stochastic Oscillator
- Swing Index
- Three Line Break
- Time Series Forcast
- Tirone Levels
- Total Short Ratio
- Trade Volume Index
- Trendlines
- TRIX
- Typical Price
- Ultimate Oscillator
- Upside/Downside Ratio
- Upside/Downside Volume
- Vertical Horizonal Filter
- Volatility, Chaikin's
- Volume
- Volume Oscillator
- Volume Rate-of-Change
- Weighted Close
- Williams' Accumulation/Distribution
- Williams' %R
- Zig Zag