Definitions for "Advance-Decline Line"
This is one the best known market breadth indicators. Each day, a certain number...
The advance-decline line graphs the ratio of shares that have risen in value — the advancers — to Shares that have fallen in value — the decliners — over a particular trading period. The direction and steepness of the A-D line gives you a general idea of the direction of the market. For example, a noticeable upward trend, which is created when there are more advancers than decliners, indicates a growing market. A downward slope indicates a market in retreat. At times, however, there may be no clear trend in either direction.
A market analysis tool used to measure of the overall market's direction. Equal to the number of stocks that rose divided by the number of stocks that fell during some specified period.