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1992issue C031-3

Five-day sum construction of the trading index

The daily trading index is the advancing-to-declining issue ratio divided by the advancing-to-declining volume ratio. A ten-day average and an undivided five-day sum of that series use different overbought and oversold bands.

  • A daily trading index is built by dividing the advancing-to-declining issue ratio by the advancing-to-declining volume ratio.
  • A ten-day moving average of that index treats readings above 1.00 as oversold and readings below 0.80 as overbought.
  • An undivided five-day sum of the same closes treats totals below 4.00 as overbought and near market tops, and totals above 6.00 as oversold and near market bottoms.
  • After the five-day sum falls below 4.00 and then turns higher, the construction places a short-term top within one to four days.
Entries in this reading3 entries
Current trackMarket breadth120 readingsVolume-price analysis129 readingsMoving average449 readings

The daily trading index

A daily trading index is built by dividing the advancing-to-declining issue ratio by the advancing-to-declining volume ratio.

Market-breadth is the advancing-versus-declining issue count that forms the numerator of that daily trading index. Volume-price analysis is the advancing-versus-declining volume ratio that forms the denominator.

A ten-day average

One common construction applies a ten-day moving average to the daily trading index and treats readings above 1.00 as oversold and readings below 0.80 as overbought.

That moving average is a ten-day average of daily trading-index values, used as one smoother of the same series the five-day construction leaves as a raw sum.

An undivided five-day sum

An alternative construction adds the last five daily trading-index closes and does not divide that total by five.

The five-day undivided sum is treated as overbought below 4.00 and oversold above 6.00. In that five-day construction, sums below 4.00 are placed near market tops and sums above 6.00 near market bottoms.

A plotted sample and the turn window

A plotted sample of the five-day sum from April 1990 through October 7, 1991 marks each extreme above 6.00 with a down arrow and each extreme below 4.00 with an up arrow.

After the five-day sum falls below 4.00 and then turns higher, the construction places a short-term top within one to four days.

TRIN-5, April 1990–October 1991

Five-day undivided sum of daily TRIN from April 1990 through 7 October 1991, read off Figure 1. Crosses above 6 mark oversold bottoms; crosses below 4 mark overbought tops, often within one to four days of the short-term turn.
Five-day undivided sum of daily TRIN from April 1990 through 7 October 1991, read off Figure 1. Crosses above 6 mark oversold bottoms; crosses below 4 mark overbought tops, often within one to four days of the short-term turn.TRIN-5 (NYSE advance-decline / advance-decline volume) · daily five-day sum · 1990-04-01T00:00:00.000Z to 1991-10-07T00:00:00.000Z

Y values are approximate readings from the published raster; daily TRIN prints are not tabulated. Oversold is the source’s 6.00 band and overbought is 4.00; the sum is not divided by five.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
29 of 71 in the Market breadth track
19921-5 pp.Next on Market breadthDaily closing-trin extremes and next-day directionThe closing-trin restates the daily breadth-volume print as average declining volume divided by average advancing volume, so a bearish-high-print is read as bearish and a bullish-low-print as bullish.
All readings on this track · 71 readings
  1. 1987How a failed rebound, weak breadth, and cycle dates broke the 1987 bull case
  2. 1988Diagnosing market bottoms with breadth, divergence and averages
  3. 1988Diagnosing index tops with breadth divergences
  4. 1988Record highs versus seven-day breadth and divergence
  5. 1989Constructing a percentage-scaled internals composite
  6. 1989Constructing a weekly block-tick breadth z-score
  7. 1989Constructing a dual-rate advance-decline oscillator
  8. 1989Normalize advance-decline series for a common-scale comparison
  9. 1990Unchanged-issue share as a narrow-breadth case study
  10. 1990Evaluating daily and weekly unsigned plurality breadth
  11. 1990Constructing paired new-high and new-low breadth indicators
  12. 1990Ten-day HI/LO extremes as a long-horizon breadth signal
  13. 1990Confirming index cycles with breadth, volume, and waves
  14. 1990Index cycle gates from breadth and volume
  15. 1990Constructing advance-decline breadth indicators
  16. 1990Weekly advance-decline oscillator: weight map, extremes, and spike cycle
  17. 1990Price-weighted construction distorts breadth, support, and trend
  18. 1991A peak-sequence test from the new-highs-to-advances-ratio
  19. 1991Fuzzy rules that turn daily market-breadth into a session consensus
  20. 1991From daily breadth tallies to a weighted consensus signal
  21. 1991Retesting market-breadth when market structure changes
  22. 1991Constructing TRIN as a breadth-volume ratio
  23. 1991Build the market clock before you read a price bar
  24. 1991A construction audit of the long-horizon trading index
  25. 1991Independent formula timers kept as a testable combination
  26. 1992When identical TRIN prints come from different pairings
  27. 1992Grade closing tick before a next-session breadth hypothesis
  28. 1992Noncumulative advance-decline swing confirmation
  29. 1992Five-day sum construction of the trading index
  30. 1992Daily closing-trin extremes and next-day direction
  31. 1992A three-layer audit: regime, breadth, and group RSI
  32. 1992Constructing a nine-state trend, momentum, and breadth score
  33. 1993Constructing a market-volume-impact rating from nested averages
  34. 1993When advance-decline confirmation counts the wrong universe
  35. 1993Constructing breadth momentum from advance-decline smoothing
  36. 1993Constructing a cumulative market-thrust line
  37. 1994Three-horizon construction of the Haurlan index
  38. 1994Checklist-gated session entry in 1993 index futures
  39. 1994Read one advance-decline pair through three windows
  40. 1994Constructing calibrated market-breadth summation indexes
  41. 1994Constructing a two-speed advance-decline oscillator and a calibrated summation
  42. 1995NYSE tick extremes and candlestick reversal entries
  43. 1995Assembling range, breadth, and a stored stop into one procedure
  44. 1995Restating market breadth timing rules as ratios
  45. 1995Constructing breadth ratio gates after lookback drawdowns
  46. 1995Building a short-range breadth and price oscillator
  47. 1996Constructing a smoothed advance-decline trend filter
  48. 1996Smoothed advance-decline alerts at the 1987 and 1990 turning points
  49. 1996Constructing breadth, RSI, and stochastic range filters
  50. 1996New-high and new-low counts as a breadth construction
  51. 1996Constructing the four-input breadth-volume ratio
  52. 1996Constructing the McClellan oscillator and a calibrated summation index
  53. 1996Declare the oscillator seed, then calibrate only the summation index
  54. 1997Three-gate centered strength in market-breadth construction
  55. 1997Daily advance-decline and new-high new-low breadth signals
  56. 1999Index-fund positions as a majority-vote committee
  57. 2000Tick, tiki and TRIN as a three-layer session confirmation stack
  58. 2000Constructing an advance-decline oscillator from one listed tape
  59. 2001Market breadth, beta, and volume-price confirmation
  60. 2001Regime context from relative venue volume, breadth, and intermarket spreads
  61. 2002When NYSE breadth misreads operating-stock participation
  62. 2003Two-gate breadth divergence and a trend filter for rally tops
  63. 2003Market internals confirm or diverge from the index
  64. 2004Constructing the McClellan oscillator and summation index
  65. 2005Intraday index-futures divergence as a three-part session hypothesis
  66. 2005Breadth summation levels as a short-term signal filter
  67. 2005Checking trend versus range with breadth and divergence
  68. 2011Constructing a Nasdaq hi-lo index from highs, lows, and issues traded
  69. 2013Cumulative advance-decline versus a one-year average
  70. 2013A one-year breadth average as a participation gate
  71. 2015Falsifying a healthy correction with breadth and support
By fieldMarket breadth101 readingsBy year1992115 readings
All 120 readings tagged Market breadth
Also on Market breadth5 readings
1991Build the market clock before you read a price bar1991A construction audit of the long-horizon trading index1993Constructing a market-volume-impact rating from nested averages2001Market breadth, beta, and volume-price confirmation1990Confirming index cycles with breadth, volume, and waves