The Advance/Decline Line
The Advance-Decline Line (AD Line) is a breadth indicator
based on Net Advances, which is the number of advancing
stocks less the number of declining stocks. Net Advances is
positive when advances exceed declines and negative when
declines exceed advances. The AD Line is a cumulative
measure of Net Advances, rising when it is positive and
falling when it is negative. Chartists can use Net Advances
to plot the AD Line for the index and compare it to the
performance of the actual index.
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