advance-decline line

Also found in: Dictionary.


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 line (A/D)

The line that results from plotting the advance-decline index over a period of time. The direction of the advance-decline line is used to confirm movements in a stock or the market.
References in periodicals archive ?
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.
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.
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.