STIX is a short-term trading oscillator, which helps to determine the momentum of the market. It compares the volume flowing into growing and falling stocks, as said in the Polymetric Report. The STIX indicator is measured using a variation of the Advance/Decline Ratio and gives a comparative percentage of growing stocks.
A/D Ratio = ( Advancing Issues / Advancing Issues-Declining Issues ) *100
STIX is then a 21-period (9%) exponential moving average of the above A/D Ratio:
STIX = (A/D Ratio * 0.09) + (yesterday's STIX * 0.91)
The STIX usually vibrates around 50. Values over 50 are generated when there have been more growing stocks than declining ones. Values under 50 are generated when more stocks have been declining in price.
>58: Extremely Overbought
>56: Fairly Overbought
<45: Fairly Oversold
<42: Extremely Oversold