More Technical Analysis Terminology
| Name | Meaning | Comments |
|---|---|---|
| Advance/Decline Line | The A/D Line is a measure of market breadth. It is simply the cumulative total of the Advancing/Declining Issues Indicator, which measures the number of advancing “issues” versus the number of declining “issues” on the NYSE. | When more stocks are rising than falling, the A/D Line will be positive and vice versa. As such, it is a useful measure of market breadth. The Dow Jones Industrial Average (DJIA) is an index of just 30 stocks. While it is viewed as a total market bellwether, 30 stocks is hardly representative. The NASDAQ is weighted toward technology stocks, again, hardly a representative sample. Therefore, the Advance/Decline Indicator is seen as a useful tool to ... |
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