Hello board,

I have been recently looking into way of quantifying breadth and got some inspiration from a guy who runs a site called emini watch. This indicator tries to mimic what he has done. It's not as good, but it does have some nice patterns.

For those who don't know, TRIN analyzes advancing issues vs. declining issues. It is a breadth measurement popularized (created?) by Dick Arms. It is an excellent way to gauge market strength without using any price data.

I figured I'd put my work up here and see if anyone gets an inspiration to make it better.

It uses the Nasdaq and NYSE trin figures - -- takes a logarithmic reading of each and inverts it (since TRIN is normally upside down).

These two numbers are averaged and smoothed with a 3 period exponential average.

Then this average is cumulated (added to the previous reading).

This number is then detrended (distance from a moving average taken).

Lastly the linear regression slope of this detrended reading is taken.

***IMPORTANT**** to set up this chart you need 3 data streams.

First is your symbol.

Second is the NYSE TRIN : $trin

Third is the Nasdaq TRIN: $trinq

I am not an expert at reverse engineering, but I like this concept of analyzing breadth. Maybe I have over manipulated the numbers. This is a work in progress, and contributions from the board are appreciated.

You may learn something from this guys site. He seems legit, sells his indicator for a reasonable price. Has good analysis of the market leading me to believe he is a trader first, programmer second. I think his site is eminiwatch.com, but you can google it if you're interested.



WS