advance/decline ratio investment & finance definition
A ratio that is commonly used to determine the strength of a stock market. The ratio is the number of stocks whose price rose compared with the number of stocks whose price fell.
Advance/Decline Ratio (A/D Ratio)
It is another technical indicator depicting the ratio of advancing issues to decreasing issues.
The Advance/Decline Ratio is the ratio of the number of advancing issues to the number of declining issues. The values can be read easily. For instance, a value of two means that there were twice as many advancing issues as declining issues.
Advance/Decline Ratio = Number of advancing moments / Number of declining moments
If ADR is less than 1 it means that there is more declining moments than advancing. If ADR is higher than 1 - advancing moments prevail.
Advance/Decline Ratio (Issues) = Advancing Issues / Declining Issues
The AD issues ratio is applied as follows: ...
Advance/decline ratio: The ratio of the number of stocks increasing in price to the number of stocks decreasing in price. Also called the "breadth of the market." ...
ADVANCE/DECLINE RATIO
Overview
The Advance/Decline Ratio ("A/D Ratio") shows the ratio of advancing issues to declining issues. It is calculated by dividing the number of advancing issues by the number of declining issues.
Advance/Decline Ratio: 34.94/22.31 = 1.566
Calculations for the other two ratios (1.374 and .309) are shown on the corresponding chart.
The advance/decline ratio is frequently used as an "overbought/oversold" indicator to indicate possible market reversal points. Some analysts also use it to measure market sentiment.
The advance/decline ratio is useful for determining the overall breadth of market movement. In concert with other measurements it helps give a broader picture of market moves.
The Advance/Decline Ratio (aka "A/D Ratio") is the number of advancing issues divided by the number of declining issues. This makes it similar to the Advancing/Declining Issues - it shows market breadth (strength).
The advance/decline ratio is the number of advancing issues, which are stocks that closed higher today than in the previous trading session, divided by the number of declining issues, ...
Advance/Decline Ratio: The number of stocks advancing divided by the number of stocks declining over a particular time period. See Breadth Ratio.
Advance/Decline Line: Each day's declining issues are subtracted from the day's advancing issues.
(Advancing Issues / Declining Issues) is called the Advance/Decline Ratio
(Advancing Volume / Declining Volume) is called the Upside/Downside Ratio.
The Arms Short-Term Trading Index, commonly known as TRIN, shows the relationship between stocks that are advancing/declining in price and the volume associated with these stocks. It is calculated by dividing the Advance/Decline Ratio by the Up/Down ...
 See also: Indicator, Advance, Ratio, Index, Market
  
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