Question

1. The Arms Index measures the

	a.	net advancing stocks in the market
	b.	relative volume in advancing vs declining stocks
	c.	the relationship between new highs and new lows in the market
	d.	the rate of change of new highs in the market

2. In the High Low Logic Index low levels are bearish and high levels are bullish, generally

True

False

Answer 1

1.B ) Relative volume in advancing vs declining stocks

The Arms Index, is a technical analysis indicator that compares the number of advancing and declining stocks (AD Ratio) to advancing and declining volume (AD volume). It is used to gauge overall market sentiment.

2. True

A high-low index above 50 means more stocks are reaching 52-week highs than reaching 52 lows. Conversely, a reading below 50 shows that more stocks are making 52-week lows compared to stocks making 52-week highs. Therefore, investors and traders are generally bullish when the index rises above 50 and bearish when it declines below 50.