Advance-decline (A-D) ratio

Advance-decline (A-D) ratio,

Definition of Advance-decline (A-D) ratio:

  1. Ratio that gives a rough indication of the direction of a stockmarket. It compares the number of stocks trading above their previous closing price with those trading below. When drawn on a chart, the steepness of A-D line shows if a strong bull or bear market is under way. See also Arms index. Formula: Number of stocks advancing in price ÷ Number of stocks declining in price.

Meaning of Advance-decline (A-D) ratio & Advance-decline (A-D) ratio Definition