Learn Trin Analysis to make Money from Stock Market | Blog Brings Profit For You
  • Recover Lost Money Plan

    A number of traders have lost their money in the market due to wrong trading advice or wrong decisions and emotions. We keep on getting a number of requests for helping these traders recover their lost money. Thus, this was the genesis of Recover Lost Money Plan. We are proud to say that till date we have helped 1290 people recover their lost money. Recover Lost Money in Market

  • Our Most Successful Intraday Tip

    Jackpot tip, as the name suggests has the potential to make you a Millionaire as it is not the number of tips one trades; but it is the accuracy of a single tip which has the potential to make you a Millionaire. This tip is a value for money for all i.e whether one can see the trading terminal or not or is dealing through a broker on phone at BSE, NSE or in Future and Options segment.
    Click on Jackpot Sure Shot Tip to know more...

Subscribe to this blog

Subscribe to full feed RSS
What is Daily Market State???
Enter your Email

Preview | Powered by FeedBlitz

Learn Trin Analysis to make Money from Stock Market

Posted By On 9/27/2009 01:27:00 AM Under

Technical analysts use a number of indicators to arrive at the state of the market and also to know the trend of Nifty Stocks and one of the indicator is Trin and in subsequent paras we will learn about the same as this indicator has a lot of potential.

The TRIN (Trader's Index) indicator was developed by Dick Arms and is defined as (No. Of Advanceing Stocks/ No. Of Declining Stocks) / (Advancing Volume/ Declining Volume).

TRIN tells us whether in Nifty index the number of stocks advancing or declining are getting their proportionate share of the day’s volume. In other words, are advancing stocks or declining stocks receiving their fair share of the overall volume? A TRIN reading above 1.00 signifies that, on a disproportionate basis, more money is flowing into declining stocks than advancing stocks. A TRIN reading of less than 1.00 shows us a market day where a disproportionate amount of the volume is flowing into advancing stocks.

Extreme values in the Trin, typically precedes a market reversal. High values signal a short-term bottom and low values a short-term top. Even some Forex Gurus state that extreme values in the Trin signal a market reversal roughly 90% of the time.

The most important item to note regarding the TRIN is that the trend of the TRIN is more important than any specific number that it prints. It is not advisable to fight the trend of the TRIN.

If, at 1:30 pm, one notice that the TRIN is rising throughout the entire session, it is advisable to look for a good short entry. The opposite situation is true for a down trending TRIN.

When the TRIN reaches extremes on a closing basis, it indicates a counter move on the opening of the following days trading session. An Arms figure of greater than 2.0 on a closing basis gives the market a 90% chance to open higher the following session. Conversely, a closing Arms of 0.5 or lower indicates that the market has most likely put in a short-term top and will move lower on the opening of the next trading day.
Click Here to Get Free Stock Market Technical Analysis Tips and Charts in Email

Most Read Content