short-term trading index

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Short-Term Trading Index

In technical analysis, a ratio indicating whether to buy or sell securities in the short term. It is calculated thusly:

Short-term trading index = (Volume of advancing securities - Volume of declining securities) / (Number of advancing securities - Number of declining securities)

A ratio above 1.3 is considered a buy signal, while a ratio below 0.7 is seen as a sell signal.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

short-term trading index

A technical trading indicator that is calculated by dividing the volume of advancing stocks relative to the volume of declining stocks by the number of advancing stocks relative to the number of declining stocks. An index value above 1.30 is considered a buy signal, while a value below 0.70 is a sell signal.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.