Page 225 - THE MARKET WHISPERER

THE MARKET WHISPERER 22 1
Bollinger Bands for Visa, V

Note how 90% of the stock’s movement is caught between the two
bands. Notice also that the distance between the bands widens as volatility
increases. In my personal opinion, Bollinger bands are the most interesting
and useful of all indicators that I display on my intraday charts.

TRIN

As discussed in the chapter on market indices, to determine market
direction and evaluate its continued direction, we tend to rely chiefly on the
S&P 500 and are assisted also by the NASDAQ 100. These two indices are
excellent tools which allow evaluating market direction, but they do have
a disadvantage: when the market rises or falls, it is difficult to know the
force of buyers and sellers. This is because charts show market direction
but do not show an additional, important component that influences our
decisions: volume. Completing the picture requires that we know the
force of the trading volume flowing into rising or falling prices. The TRIN,
also known as the Arms Index after its creator Richard Arms, is meant to
improve this state of uncertainty. The function of the TRIN is to measure
declining trading volume compared to rising trading volume.

The symbol for TRIN on your charts differs from one broker’s platform
to another, but will generally be $TRIN, although the dollar sign may also