Question

The following table contains data on market advances and declines. Market Advances and Declines Day Advances (in millions) Declines (in millions)

1. 910 715

2. 661 990

3. 723 793

4. 505 972

5. 501 1,096

6. 971 704

7. 1,006 615

8. 907 724

9. 854 736

10. 770 770

a. If the trading volume in advancing shares on day 1 was 1.5 billion shares, while the volume in declining issues was 1.2 billion shares, what was the trin statistic for that day? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

b. Was trin bullish or bearish? Bearish Bullish

Answer 1

TRIN = (Advancing Volume/Declining Volume)/(Advancing Stocks/Declining Stocks​)

where:

Advancing Stocks = ​Number of stocks that are higheron the day​

Declining Stocks = ​Number of stocks that are loweron the day​

Advancing Volume = ​Total volume of all advancingstocks​

Declining Volume = ​Total volume of all decliningstocks​​

Day 1

Advancing Stocks = 910 million = 0.91 billion

Declining Stocks = 715 million = 0.715 billion

Advancing Volume = 1.5 billion

Declining Volume = 1.2 billion

TRIN = (Advancing Volume/Declining Volume)/(Advancing Stocks/Declining Stocks​)

= (1.5/1.2)/(0.91/0.715)

= (1.25)/(1.2727272727)

= 0.9821428571

As we know if the value of TRIN is less than 1 then it is bullish. Thus the TRIN is bullish for Day 1.