A technical indicator that reflects the strength of the trend by measuring the difference between assets with rising value and those with declining value.

Advance/Decline (A/D) Index  = Current (Advance-Decline) + Previous A/D Index

For example imagine looking at a group of 30 stocks. The index was at 100, and then 10 out of 30 stocks in rallied, while 20 declined. The index then becomes (10-20)+100 = 90.

 

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