advance-decline line

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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