Advance/Decline Index

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Dictionary Says

Definition of 'Advance/Decline Index'

A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered one of the best indicators of market movements as a whole. Stock indexes such as the Dow Jones Industrial Average only tell us the strength of 30 stocks, whereas the advance/decline index can provide much more insight into the movements of the market.

Advance/Decline Index
Investopedia Says

Investopedia explains 'Advance/Decline Index'

In general, rising values of the advance/decline can be used to confirm the likelihood that an upward trend will continue. If the market is up but there are more declining issues than advancing ones, it's usually a sign that the market is losing its breadth and may be getting ready to change direction.

Imagine that the advance/decline index on the S&P 500 is currently at 1835. If at the end of the last trading day, 300 stocks were up (advance) and 200 were down (decline), 100 would be added to the advance/decline index value, pushing it to 1935.

When this index is plotted on a chart, it is known as the "advance/decline line".
Search results for

'Advance/Decline Index'

  • Market Breadth: Advance/Decline Indicators | Investopedia

    http://www.investopedia.com/university/marketbreadth/marketbreadth3.asp
    ... therefore, be taken as a warning of an impending turning point in the index or market. ...
    Advance/Decline Spread A variation on the A/D line is the A/D spread. ...

  • Exploring Oscillators and Indicators: Market Indicators ...

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    ... This is done by creating a running total of the McClellan oscillator in the same
    way the advance-decline line was created. This index is generally thought to ...

  • Accumulative Swing Index And The McClellan Oscillator

    http://www.investopedia.com/articles/technical/02/100702.asp
    ... term indicator, anticipating positive and negative changes in the advance/decline
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  • Series 7 Study Guide - Portfolio Management - Securities Analysis ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/securities-analysis.asp
    ... Advance-Decline Index: One measure of market sentiment is the advance-decline index,
    the ratio of all stocks traded on an exchange that have gained in value to ...

  • Is A Reversal On The Way? Consult Traders' Index

    http://www.investopedia.com/articles/trading/03/021203.asp
    ... when combined with a reading of NH-NL (new-high new-low index). ... Conclusion When combined
    with advance/decline information, intraday TRIN is also available to ...

  • Market Strength: Advancers to Decliners | Investopedia

    http://www.investopedia.com/university/strength/strength2.asp
    ... Looking at the A/D line (not just the advance decline ratio) shows us the ... Next: Market
    Strength: Relative Strength Index and Arms ». Table of Contents. Market ...

  • Discovering the Absolute-Breadth Index and the Ulcer Index

    http://www.investopedia.com/articles/technical/03/030403.asp
    Discovering the Absolute-Breadth Index and the Ulcer Index. April 11 2010 | Filed
    Under » Active Trading, Technical Analysis, Technical Indicator. ...

  • Elliott Wave: Challenges Faced By An Expert | Investopedia

    http://www.investopedia.com/university/advancedwave/elliottwave1.asp
    ... in upside momentum, and the trading index quickly became extremely overbought, which
    indicated that the rally was in trouble. Advance/decline ratios were the ...

  • Banking Profits In Bull And Bear Markets

    http://www.investopedia.com/articles/stocks/09/profit-in-bear-bull-markets.asp
    ... if the S&P 500 rises 10%, an ETF based on the index will rise ... Advance/Decline Line:
    The advance/decline line represents the number of advancing issues divided ...

  • 3 Key Signs Of A Market Top

    http://www.investopedia.com/articles/trading/10/signs-of-market-top.asp
    ... chart shows this clearly, declining well before the sell is reflected in the Dow
    index. ... low) in the first week of 2008, along with the NYSE advance/decline line ...

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