The ARB Index is a short term indicator of the market's general direction for the next 3 to 5 days. It is an oscillator that measures overbought and underbought conditions and normalizes them for volume and market direction. The ARB Index has readings from 0 to 10. Readings above 8 indicate an extremely over sold condition. Readings below 3 indicate a major over bought condition and a general stock decline is imminent. Readings below 3 and above 8 have shown a +95% probability of a reversal.