The advance/decline line is a popular market breadth indicator. It is a simple measure of how many stocks are taking part in a rally or sell-off and it’s usually calculated from NYSE stocks. The A/D line is calculated as follows:
A/D Line = (number of advancing stocks for the day – number of declining stocks for the day) + yesterday’s A/D line value
The Advance/Decline Ratio Oscillator (ADRO) is a variation on the advance/decline line where it accounts for total market volume beyond the NYSE. The ADRO has a tendency to identify near-to-intermediate tops when the indicator is above 4.00, and near-to-intermediate bottoms when the indicator is at -2.00 or below. Chart courtesy of Market Harmonics.
Advance/Decline Ratio Oscillator (ADRO)
The advance/decline line is a popular market breadth indicator. It is a simple measure of how many stocks are taking part in a rally or sell-off and it’s usually calculated from NYSE stocks. The A/D line is calculated as follows:
A/D Line = (number of advancing stocks for the day – number of declining stocks for the day) + yesterday’s A/D line value
The Advance/Decline Ratio Oscillator (ADRO) is a variation on the advance/decline line where it accounts for total market volume beyond the NYSE. The ADRO has a tendency to identify near-to-intermediate tops when the indicator is above 4.00, and near-to-intermediate bottoms when the indicator is at -2.00 or below. Chart courtesy of Market Harmonics.