:: indicators

many technical indicators are used by traders. Here we discuss The Advance/Decline Line

Back to the list of indicators.

The Advance/Decline Line

The Advance/Decline Line ("A/D Line") is used to measure market breadth, being a cumulative total of the Advancing/Declining Issues indicator. Breadth in this case means a market's strength.When more trading stocks are advancing than declining, the A/D Line moves up otherwise down. The A/D Line may be a better visual indicator of a markets direction than more traditional measures (such as the S&P Index, for example), giving a better visual clue as to the market's trend, and how long it has been trending. Often, divergences between the A/D line and a market signal the end of a trend - the A/D changing BEFORE the underlying market. The numeric value of the A/D Line is less important than its slope and pattern.

For more information on indicators and how to use them, try:-



Using The Advance/Decline Line when day trading, plus swing trading strategies using The Advance/Decline Line and investing based on the The Advance/Decline Line indicator