Advance-decline

A-D

In technical analysis, a line plotting the advance-decline index over a period of time. The advance-decline index takes the total of stock issues increasing on a trading day and subtracts the number of stock issues declining on the same day. Technical analysts use the index as an indicator of market movements, and use the advance-decline line to confirm a movement. If the line slopes upward over time, it indicates an upward trend, and, if it slopes downward, the opposite is true.

Advance-decline (A-D) line.

The advance-decline line graphs the ratio of stocks that have risen in value -- the advancers -- to stocks 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.

References in periodicals archive ?
There's still a sense of overheating when we look at the advance-decline ratio, but the market is resilient.
According to analysts at the bank, the MSCI EMEA Index's 200-day moving average, the advance-decline ratio, risk appetite, cash levels, fund flows and seasonality of developing-economy stocks have turned negative.
Stocks spent most the day higher, but the advance-decline line was narrow and the market turned negative in late afternoon.
The weekly advance-decline line composed of the figures from Barron's each week has given up little ground during this decline.
The Advance-Decline charts are the only indicators bullishly diverging from the market, but even they do not suggest much strength.
The market breadth with advance-decline ratio of 2.
There is still a sense of overheating when we look at the advance-decline ratio, but the market is resilient.
Additionally, two special features in the industry group analysis -- the Advance-Decline Line and the High-Low Index -- provide technical indicators designed to help forecast when a group is nearing a top or bottom of a cycle.
Brogan, Editor of the Signal Report, will discuss NYSE Cumulative Up/Down and Advance-Decline Line (NYSE), Nasdaq Advance-Decline Line and Summation Index (Nasdaq), S&P 500 Daily/Index (SP500), American Biotech Index (BTK), Nasdaq 100 Index (NDX), American Internet Index (IIX), American Natural Gas Index (XNG), SDL, Inc.
With the advance-decline ratio remaining at a high level, we may see some corrective moves.
He will chart and discuss the NYSE Cumulative Up/Down and Advance-Decline Line (NYSE), Nasdaq Advance-Decline Line and Summation Index (Nasdaq), S&P 500 Daily/Index (SP500), American Biotech Index (BTK), Nasdaq 100 Index (NDX), American Internet Index (IIX), American Natural Gas Index (XNG), SDL, Inc.
He says he'd be more worried if he saw signs that additional bears are throwing in the towel, leaving too few prospective new buyers, as well as if the advance-decline ratio deteriorated on up days and new 52-week lows on the NYSE picked up from the recent 15-25 to the area of 75-100.