Advance/Decline Line - A/D (redirected from a/d line ad line)

Advance/Decline Line - A/D

A technical analysis tool representing the total of differences between advances and declines of security prices. The advance/decline line is considered the best indicator of market movement as a whole. Stock indexes such as the DJIA only tell us the strength of 30 stocks whereas the A/D line provides much more insight. Also referred to as "advance-decline index."

Notes:

If the markets are up but there are more declining stocks than advancing ones, it's usually a sign that the markets are losing their breadth. If the number of advancing issues are dominating the declining issues and the market is then said to be healthy. If it is falling, then the market is not healthy.

See also: Arms Index (TRIN), Breadth of Market, Technical Analysis