Upside/Downside Ratio

Upside/Downside Ratio

A technical indicator that shows the relationship between the volumes of advancing and declining issues on an exchange - in particular, the New York Stock Exchange. The upside/downside ratio is used to determine the momentum of the market at any particular time.

The ratio is calculated as follows:

Advancing Issues / Declining issues

Where

Advancing Issues = Total volume traded of securities that closed above their opening price Declining Issues = Total volume traded of securities that closed below their opening price

The upside/downside ratio is often smoothed using a standard moving average or other type of moving average to filter out smaller, less significant movements. Values greater than 1 are generated when more issues are advancing than declining, in terms of volume. Values less than 1 are created when more issues are declining than advancing, in terms of volume. The upside/downside ratio is often used to gauge over-bought and over-sold conditions in the market. Low values can indicate that the market is becoming over-sold and high value can demonstrate that the market is becoming over-bought. The upside/downside ratio is available as a technical indicator on many trading platforms.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Sortino ratio — The Sortino ratio measures the risk adjusted return of an investment asset, portfolio or strategy. It is a modification of the Sharpe ratio but penalizes only those returns falling below a user specified target, or required rate of return, while… …   Wikipedia

  • ИНВЕСТИРОВАНИЕ: СПОСОБЫ И СТРАТЕГИЯ — INVESTMENT METHODS AND STRATEGIESСамые различные теории существуют насчет того, как наиболее удачно выбирать ценные бумаги. Разница между ними заключается главным образом в том, насколько они отличают капиталовложения (инвестиции) от спекуляций.… …   Энциклопедия банковского дела и финансов

  • Post-modern portfolio theory — [The earliest citation of the term Post Modern Portfolio Theory in the literature appears in 1993 in the article Post Modern Portfolio Theory Comes of Age by Brian M. Rom and Kathleen W. Ferguson, published in The Journal of Investing, Winter,… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Land Rover Series — Infobox Automobile name = Land Rover Series manufacturer = Land Rover successor = Land Rover Defender class = Off road vehicle production = 1948–1985 assembly = Solihull, England layout = FR layout/All wheel drive similar = Mercedes Benz G Class… …   Wikipedia

  • Dirt jumping — is one of the names given to the practice of riding bikes over cement type jumps of dirt or soil and becoming airborne. The idea is that after riding over the take off the rider will become momentarily airborne, and aim to land on the landing .… …   Wikipedia

  • Convertible bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Capital structure — Gearing ratio redirects here. For the mechanical concept, see gear ratio. Finance Financial markets …   Wikipedia

  • Collar (finance) — In finance, a collar is an option strategy that limits the range of possible positive or negative returns on an underlying to a specific range. Contents 1 Equity Collar 1.1 Structure 1.2 Example 2 …   Wikipedia

  • Spider — Taxobox name = Spiders image width = 250px image caption = an Orb weaver spider, Family: Araneidae regnum = Animalia phylum = Arthropoda subphylum = Chelicerata classis = Arachnida ordo = Araneae ordo authority = Clerck, 1757 diversity link =… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”