advance-decline (A-D) ratio
Definition
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.
advance-decline (A-D) ratio is in the Accounting & Auditing, Investing and Securities & Futures Trading subjects.
advance-decline (A-D) ratio appears in the definition of the following term: Arms index
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