   
|
|
Advance/decline Line
|
The advance/decline line is a technical indicator used to graph the difference between the number of advancing stocks and the number of declining stocks for a given day. The advance/decline line goes up if this difference is positive. The advance/decline line goes down if the difference is negative. Therefore, a rising advance/decline line indicates a bullish market, while a declining advance/decline line indicates a bearish market. Typically, the advance/decline line is used to evaluate short-term trends as opposed to trends over several years. Many traders use the advance/decline line to validate trends in the market and their likelihood of continuing. If markets are up but the advance/decline line is falling, traders view this as a signal that the market may soon reverse direction. Also, if markets are up and the advance/decline line is rising, this is an indication of a continuing robust market.
Rate this advance/decline line definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
