STIX

STIX is a technical indicator. STIX stands for Short term IndeX. STIX is an exponential moving average of a variation of the advance/decline ratio. STIX compares the number of advancing stocks to the number of stocks advancing and declining. Investors look at STIX to get insight on whether or not the market is trending up or down. STIX is also called STIX oscillator.

STIX is calculated as follows:

STIX (t)= [[A(t)/[A(t)+D(t)]*0.09]+STIX (t-1)*0.91] where

STIX (t): STIX today
A(t): number of advancing stocks
D(t): number of declining stocks
STIX (t-1): STIX yesterday

STIX varies around the value of 50. At 50, advances and declines in stocks are said to be equal. To provide perspective on how the value of STIX can vary, during the 20th century for example, STIX has been as low as 28 and as high as 69. Both those records were set in 1932. Some stock market traders and investors use STIX in an effort to time the market. For example, when the market sells off and STIX gets to a relatively low level (i.e. less than 42), some investors view this as an oversold condition which could, in short order, be followed by a rally.