Terms

Trading Index

Nick Name
ARMS Index
Abbreviation
ARMS
The Trading Index (ARMS Index) measures how much volume it takes to move stocks higher vs. lower and is constructed by dividing the advance/decline ratio by the up/down volume ratio.

  • A lower (more importantly decreasing trend) value indicates that buyers or spending more money to keep stock rising than sellers of declining stocks are receiving.
    • This is bearish and may foretell a recent orĀ  approaching market top
  • The index typically hovers around 1.00