the NYSE trading data Day Declines Volume Advancingtm) Volume Declining(m) Yield
ID: 2807141 • Letter: T
Question
the NYSE trading data Day Declines Volume Advancingtm) Volume Declining(m) Yield on Top Rated bond Yield on intermediate-grade bond 770 760 960 740 790 990 790 810 480 620 480 410 570 580 720 420 6.8% 67% 67% 66% 7.4% 7.4% 7.5% 7.6% What is the trin ratio for day 1? b) What is the trin ratio for day 4? Does the change in the trin ratio from day 1 to day 4 show a bullish or bearish trend? d. What is the Cumulative breadth for the 4 days? e) Does the cumulative breadth indicate a bulish or bearish market?Explanation / Answer
Trin Ratio = (Volume Declining/ Number Declining)/ (Volume advancing/Number advancing)
a)For Day 1 = (570/790)/(480/770) = 1.157436
b)For Day 4 = (420/810)/(410/740) = 0.93586
c) does the change in the trin ratio from day 1 to day 4 show a bullish or bearish trend?
A trin ratio of greater than 1 is considered a bearish market and less than 1 is considered as bullish trend.
The trin ratio for day 1 is more than one so it is bearish trend but in day 4 the trin ratio becomes less than one. The trend starts as a bearish and it becomes a bullish trend in day 4.
d) Cumulative Breadth= Net advances = (advances - declines)
The signal is bearish as cumulative breadth is negative.
Day Advances Declines Net Advances Cumulative Breadth 1 770 790 -20 -20 2 760 990 -230 -250 3 960 790 170 -80 4 740 810 -70 -150Related Questions
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