As a night time side project from my day job, I have been busy honing my Java skills, creating a program that downloads price information for the entire ASX from Yahoo Finance and then calculates the ARMS index (or TRIN).
The TRIN is a useful little technical tool and can give you insight into general market sentiment. To calculate, use the following formula :-
(Number of stocks increasing/Number of stocks decreasing)/(Volume of stocks increasing/Volume of stocks decreasing)
Over last two days, the TRIN has gone from 0.88 to 0.89, indicating that buyers are in the asendency at the moment (anything under 1 means people are buying, over 1, people are selling)
A figure at around 0.9 is always a good sign for the bulls and a great indicator that the All Ordinaries will continue to increase at least in the short term
However the fact that it is going up slightly indicates that maybe the rally is starting to stall. Once it cuts over 1, I think it would indicate that maybe the selloff has begun.
But this is all academic until the fundies get back in the game (I think most of are still out sking in Aspen). Hard to tell anything with the low volumes being bought and sold at the moment, so don't hold me to account just yet. Still, I can at least say my Java skills are coming along :-)
Will keep you posted if there are any changes.
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Great job, I'd like to see your code if you don't mind? Its a useful too to gauge my decisions.
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