Dear Trader,

Today is the final lesson. I hope you have enjoyed this Free Course so far.

There’s a popular technical analysis indicator used by stock traders which measures the overall health and strength of the market as a whole. This indicator is the TRIN (Traders Index) or Arms Index, as it is also known.

TRIN is composed by 4 elements:

- NYSE Advancing Issues - NYSE Declining Issues - NYSE Advancing Volume - NYSE Declining Volume

The formula to calculate TRIN is the following:

TRIN = [(NYSE Advancing Issues/NYSE Declining Issues)/(NYSE Advancing Volume/NYSE Declining Volume)]

Of course that you don’t need to know the formula; the important part is knowing how to analyze it. I just placed it here so that you know how it’s calculated.

If TRIN equals to 1, this means that the market is neutral; if it’s above 1, it’s a bearish signal and if it’s below 1, it’s a bullish signal. If you look closely at these values, you’ll see that the TRIN moves inversely to price action.

To interpret TRIN values, some traders just look at the value itself. For example, if at the moment the TRIN is 0.7, this means that the market is bullish. Although this is not wrong, I prefer to use trends within the TRIN. For example, let’s say that the TRIN is at the moment 0.7 but it’s rising. So, in this case, I would consider that we are facing a bearish market, even though TRIN is below 1.

The overall purpose of TRIN is to help you stay on the correct side of the market, giving you an edge.

Ok, that’s it. Your Free Stock Market Mini Course is over. Please let me know if you have any doubts. Just email me and I’ll do my best to help you out.

I wish you all the success,

Elliott Pearce www.SupraStocks.com

PO BOX 4120 Portland, Oregon 97208-4120