Define: Arms Index

UK Accounting Glossary

Definition: Arms Index



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Full Definition of Arms Index


Arms Index is a mathematic market meter designed to communicate the relationship between upward and downward moving stock prices and trading volumes. Arms Index is a technical analysis indicator. Created in the late sixties by Richard Arms, the Arms Index was intended to calculate the relationship between advancing and declining averages. Namely, the Arms Index illustrates the interaction of advancing and declining issues with advances and declines of absolute volumes. Hence, the Arms Index measure can be arrived at by dividing the ratio of advance/decline issues by the ratio of total upside to downside volume. A low Arms Index reading (i.e. below .95) is considered bearish while a high Arms Index reading (i.e. above 1.65) is considered bullish. Arms Index is a short-term market figure also known as TRIN (TRading INdex).


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Definition Sources


Definitions for Arms Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.