Index

STIX

Overview

STIX is a short-term trading oscillator that was published in The Polymetric Report. It compares the amount of volume flowing into advancing and declining stocks.


Interpretation

According to The Polymetric Report:

Table 13
Extremely Overbought greater than 58
Fairly Overbought greater than 56
Fairly Oversold less than 45
Extremely Oversold less than 42


Example

The following chart shows the S&P 500 and the STIX indicator.

I drew "buy" arrows when the STIX fell below, and the rose above, the oversold level of 45. I drew "sell" arrows when the STIX rose above, and then fell below, the overbought level of 56.


Calculation

STIX is based on a variation of the Advance/Decline Ratio:

The STIX is a 21-period (i.e., 9%) exponential moving average of the above A/D Ratio:


Index