Advance Decline Ratio
Market Analysis
Definition
A market breadth indicator that compares the number of advancing stocks to declining stocks, providing insight into the underlying strength or weakness of market movements beyond major index performance.
Key Points
- Ratio above 2:1 indicates strong market breadth
- Divergences can signal market turning points
- Better measure of market health than price alone
Examples
2000 advancing vs 500 declining = strong breadthIndex rises but A/D ratio weak = narrow leadershipQuick Info
Category
Market Analysis
Related Topics
market breadth
advance decline line
market participation
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