DEFINITION of 'Decline'

When a security's price falls in value over a given trading day and subsequently closes at a lower value than its opening price. A decline can happen for any number of reasons, including a reduction in the firm's intrinsic value, or as a result of the security's price dropping below its support level.


Decline aggregate data is used to calculate the advance/decline index, which traders use to determine the direction of the market at any given point in time. It is often considered the most effective tool in gauging the market's direction or sentiment.

  1. Advance/Decline Line - A/D

    A technical indicator that plots changes in the value of the ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Breadth of Market Theory

    A technical analysis theory that predicts the strength of the ...
  4. Market Sentiment

    The overall attitude of investors toward a particular security ...
  5. Intrinsic Value

    Intrinsic value is the actual value of a company or an asset ...
  6. Advance/Decline Index

    A technical analysis tool that represents the total difference ...
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