Advance-Decline Line (A/D Line)
Definition
A cumulative technical indicator that measures the net number of advancing versus declining stocks on an exchange each day to gauge overall market breadth and internal strength.
Formula / Rules
A/D Line = Previous A/D Value + (Advancing Issues − Declining Issues)
Example
A rising A/D line alongside flat index prices suggests broad participation and underlying bullish strength.
Related Terms
Frequently Asked Question
What is the Advance-Decline Line?
The Advance-Decline (A/D) Line is a cumulative indicator tracking net advancing vs. declining stocks daily. It reveals whether market moves are broad-based or driven by just a few large stocks.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.