Glossary

Advance-decline (AD)

Technical trend indicator based on the number of advancing stocks less the number of declining stocks.

Advance-Decline (AD) is an technical indicator to determine overall market trends. It is presented as a cumulative line (AD line) and expressed as a percentage. For its calculation, all the shares of a market with daily loss of the shares are deducted from those with daily profits and and added to the AD of the previous day. Advance-Decline is used to assess the situation of the overall market quantitatively. Usually, all constituents of a stock index are considered to check if the trend of the index is still valid.

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