Advancing Volume

advancing volume investment & finance definition
A breakdown of the trading volume produced during a trading session on an exchange by those stocks whose prices rose, in contrast to that produced by the stocks that declined, ...

Advancing volume is the total volume for all securities that advanced in price. Declining volume is the total volume for all securities that declined in price.

(Advancing Volume / Advancing Issues) / (Declining Volume / Declining Issues) ...

A/D Volume Ratio = (Advancing Volume) / (Declining Volume)
Bigger than advance/decline volume ratio readings signal that the traders are more focusing trading advancing stocks.

Up/Down Volume on the NYSE - I look for days of strong advancing volume to declining volume after a decline to suggest a more meaningful bottom may have been put in.

The principles discussed above can be applied not only to the actual number of advancing and declining issues, but also to their respective volume ("advancing volume" and "declining volume").

This, in turn, is divided by the advancing volume divided by the declining volume. If there is considerably more advancing volume relative to declining volume this will tend to reduce the index (i.e. increase the denominator).

It is calculated by dividing advancing issues by declining issues and advancing volume by declining volume. The first result is then divided by the latter and the result is the TRIN.

It is derived from the McClellan Volume Oscillator which is calculated the same as the McClellan Advance-Decline Oscillator, except we begin with a ratio of Advancing Volume to Declining Volume instead of Advances and Declines.

The formula is: ((advancing issues/declining issues)/(advancing volume/declining volume))
If the TRIN > 1 the market is leaning bearish with a higher number being more bearish, but an extremely high number being a possible contrarian indicator.

(Advancing issues/declining issues)/(advancing volume/declining volume)
Examples of TRIN calculations: ...

Generally it is viewed as an indication of buying pressure. For example, when advancing volume expands it is generally viewed as bullish.

It is simply (Advancing issues/Declining issues) / (Advancing volume/ Declining volume). If more volume goes into advancing issues than declining issues the Arms Index falls below 1.0.

See also: Volume, Advancing, Declining, Declining Volume, Market