Advance/Decline Line - A/D
- Advance/Decline Line - A/D
- A technical indicator that plots changes in the value of the advance-decline index over a certain time period. Each point on the chart is calculated by taking the difference between the number of advancing/declining issues and adding the result to the previous period's value, as shown by the following formula:
A/D Line = (# of Advancing Stocks - # of Declining Stocks) + Previous Period's A/D Line Value
This indicator is used by many traders to confirm the strength of a current trend and its likelihood of reversing. If the markets are up but the A/D line is sloping downwards, it's usually a sign that the markets are losing their breadth and may be setting up to head in the other direction. If the slope of the A/D line is up and the market is trending upward then the market is said to be healthy.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
advance/decline line — (advance/decline line) n. tool used to calculate the total of differences between advances and declines of security prices, a/d … English contemporary dictionary
advance/decline line — UK US noun [S] STOCK MARKET ► a mathematical method that is used to try and calculate whether an increase or reduction in share prices, etc. is likely to continue or change … Financial and business terms
Advance Decline Line — Die Advance Decline Linie ist in der Finanzanalyse ein Trendindikator der Chartanalyse eines Gesamtmarktes. Die AD Linie wird als Zeitreihe der kumulierten täglichen Differenzen zwischen der Anzahl gestiegener und der Anzahl gefallener Aktien… … Deutsch Wikipedia
decline line — advance/decline line UK US noun [S] STOCK MARKET ► a mathematical method that is used to try and calculate whether an increase or reduction in share prices, etc. is likely to continue or change … Financial and business terms
Advance/Decline Index — A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered one of the best indicators of market movements as a whole. Stock indexes such as the Dow Jones… … Investment dictionary
advance line — advance/decline line UK US noun [S] STOCK MARKET ► a mathematical method that is used to try and calculate whether an increase or reduction in share prices, etc. is likely to continue or change … Financial and business terms
A/D line — Advance Decline, or measurement of the number of issues trading above their previous closing prices less the number trading below their previous closing prices over a particular period. As a technical measure of market breadth, the steepness of… … Financial and business terms
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