Investor Glossary-advance/decline lineInvestor Glossary-advance/decline lineInvestor Glossary-advance/decline lineInvestor Glossary-advance/decline lineInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Advance/decline Line

The HTML to link to this page
 

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...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, irrevocable trust, ex-dividend, inflation, open position, Zero Cost Collar, stock split, quality assurance, Key Rate Duration, deferred revenue, APR, reverse mortgage, minority interest, phantom income, debt service coverage, option premium, real GDP, LIBOR, balance sheet, 1035 exchange, diluted share, ex-dividend date, 144a, command economy, class C shares, cancelled check, in escrow, VIX, covered put, per diem, labor relations, required rate of return, FTSE, wholly-owned subsidiary, FICO score, limit order, implied volatility, dividends payable, liquidity ratio, retained earnings, EBITDA, deferred tax, stock market close, margin rate, current ratio, 401a, risk management, 1031 exchange


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use