Trin is a methodology to show extremes in selling or buying. Also we can say that it forecasts distribution of stocks. Moreover we can also add that Index is working effectively as an overbought/oversold indicator.
How to use Trin Indicator?
When the indicator drops to extremely overbought levels, it is foretelling a selling opportunity. When it rises to extremely oversold levels, a buying opportunity is approaching.
What is Formula to Calculate Trin?
The TRIN formula is as following:
- Near 1 is balance
- Above 1 is a rollover into selling
- Below 1 is a rollover into buying
As it spikes up or down it also measures the buying or selling pressure it takes to move the market and thus it makes sense to daily check
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