Just reprinted. Finally, it's updated and back in print! Get an in depth look at how volume - not time - governs market price changes. Describes the Arms' short-term trading index (TRIN), a measure of the relative strength of the volume in relation to advancing stocks against that of declines. A true trading gem.
[Back to top]
In 1967, Richard Arms introduced the Short-Term Trading Index in Barron's. The index has been most commonly referred to as "TRIN"; however, today the index appears as "ARMS" on most
The Arms index has changed the way technical analysts perceive the market. In discovering that stock price changes are a function of volume, Arms has made a significant impact on investors' attitudes toward the stock market.
In abandoning time as a stock market measurement and using volume instead, Arms reveals an entirely new approach to technical
analysis. He explains the information on intraday uses of the index...arithmetic moving averages...crossovers...weighted moving
In addition to describing the relationships between price and volume, The Arms Index (TRIN) gives a large number of applications the index-and offers specific analytic methods for
the day trader as well as the long-term investor. While the Arms Index was originally applied to New York Stock Exchange data, Arms includes, for the first time:
* Arms indices for the over-the-counter market
* Arms indices for the American Stock Exchange
* the Giant Arms-a combined index for OTC and AMEX
* the Bond Arms Index so you can ultimately forecast interest
With more than 25 years of experience in the investment business, Richard W. Arms, Jr., is currently vice president and technical analyst with Eppler, Guerin & Turner, Inc. He is the inventor of the Arms Index (also known as the Short Term Trading Index or TRIN) which is an integral part of Wall Street Week "Elves Index"
and is carried on the Financial News Network (FNN) tape as "ARMS."
Mr. Arms has also invented Equivolume Charting-the first new method of charting since point and figure was introduced in the 1930s-and a number of proprietary market indicators. He is the
publisher of "Volumetrics," an advisory service, and the author of two other books, including Volume Cycles in the Stock Market (Dow Jones-Irwin). His articles have appeared in many national publications, including Barron's and Pension and Investing Age, A frequent lecturer at meetings of technical analysists, Arms has
been a guest on numerous local and national television and radio programs. He appears often on FNN and has been a guest on Wall Street Week with Louis Rukeyser.
[Back to top]
Table of Contents:
Calculation of the Arms Index and the Reasoning Behind It 3
Intraday Uses of the Arms Index 11
Closing Arms Indices as an Indicator 17
Moving Averages 23
Arithmetic Moving Averages - Short-Term 29
Intermediate-Term Arithmetic Averages 39
Combining Indices 47
Tides and Tsunamis 57
The Open Arms Index 61
Predicting the Bond Market 69
Other Markets 75
Intermarket Comparisons 81
Weighted Moving Averages 85
Other Techniques 91
Sources of Data 93
[Back to top]