# Technical Analysis from A to Z

by Steven B. Achelis

S T I X

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:

- STIX usually ranges between +42 and +58.

- If STIX gets as low as 45, the market is almost always a buy, except in a raging bear market.

- The market is fairly overbought if STIX rises to 56; and except in a new bull market, it's wise to sell if STIX should go over 58.

- Traders and investors should modify these rough rules to suit their own objectives.

- In normal markets, STIX rarely gets as high as 56 or as low as 45, so rigid use of these rules of thumb would keep you inactive most of the time. For active accounts, the rules might be made much less stringent.

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:

This online edition of

*Technical Analysis from A to Z*is reproduced here with permission from the author and publisher.### Contents

- Preface
- Acknowledgments
- Terminology
- To Learn More
- Bibliography
- About the Author
- Technical Analysis
- Price Fields
- Charts
- Support & Resistance
- Trends
- Moving Averages
- Indicators
- Market Indicators
- Line Studies
- Periodicity
- The Time Element
- Conclusion
- Absolute Breadth Index
- Accumulation/Distribution
- Accumulation Swing Index
- Advance/Decline Line
- Advance/Decline Ratio
- Advancing-Declining Issues
- Advancing, Declining, Unchanged Volume
- Andrews' Pitchfork
- Arms Index
- Average True Range
- Bollinger Bands
- Breadth Thrust
- Bull/Bear Ratio
- Candlesticks - Japanese
- CANSLIM
- Chaikin Oscillator
- Commodity Channel Index
- Commodity Selection Index
- Correlation Analysis
- Cumulative Volume Index
- Cycles
- Demand Index
- Detrended Price Oscillator
- Directional Movement
- Dow Theory
- Ease of Movement
- Efficient Market Theory
- Elliott Wave Theory
- Envelopes (Trading Bands)
- Equivolume/Candlevolume
- Fibonacci Studies
- Four Percent Model
- Fourier Transform
- Fundamental Analysis
- Gann Angles
- Herrick Payoff Index
- Interest Rates
- Kagi
- Large Block Ratio
- Linear Regression Lines
- MACD
- Mass Index
- McClellan Oscillator
- McClellan Summation Index
- Median Price
- Member Short Ratio
- Momentum
- Money Flow Index
- Moving Averages
- Negative Volume Index
- New Highs-Lows Cumulative
- New Highs-New Lows
- New Highs/Lows Ratio
- Odd Lot Balance Index
- Odd Lot Purchases/Sales
- Odd Lot Short Ratio
- On Balance Volume
- Open Interest
- Open-10 TRIN
- Option Analysis
- Overbought/Oversold
- Parabolic SAR
- Patterns
- Percent Retracement
- Performance
- Point & Figure
- Positive Volume Index
- Price and Volume Trend
- Price Oscillator
- Price Rate-of-Change
- Public Short Ratio
- Puts/Calls Ratio
- Quadrant Lines
- Relative Strength, Comparative
- Relative Strength Index
- Renko
- Speed Resistance Lines
- Spreads
- Standard Deviation
- STIX
- Stochastic Oscillator
- Swing Index
- Three Line Break
- Time Series Forcast
- Tirone Levels
- Total Short Ratio
- Trade Volume Index
- Trendlines
- TRIX
- Typical Price
- Ultimate Oscillator
- Upside/Downside Ratio
- Upside/Downside Volume
- Vertical Horizonal Filter
- Volatility, Chaikin's
- Volume
- Volume Oscillator
- Volume Rate-of-Change
- Weighted Close
- Williams' Accumulation/Distribution
- Williams' %R
- Zig Zag