The advance-decline line graphs the ratio of stocks that have risen in value - the advancers - to stocks that have fallen in value - the decliners - over a particular trading period.
The direction and steepness of the A-D line gives you a general idea of the direction of the market. For example, a noticeable upward trend, which is created when there are more advancers than decliners, indicates a growing market.
A downward slope indicates a market in retreat. At times, however, there may be no clear trend in either direction.
- Browse Related Terms: Advance-decline (A-D) line, Advancer, Decliner, Gainer, Loser, Rally, Sell-off