Indicator - Advance Decline Ratio
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Calculation Advance Decline Ratio
The Advance-Decline Ratio is a market breadth indicator, concerning all stocks in a market.
It is calculated by dividing the number of advancing instruments by the number of declining instruments.
A moving average is used to smooth out the swings, the default parameter is a simple moving average on 10 bars.
Interpretation Advance Decline Ratio
A high value can indicate an overbought zone and a low value an oversold zone.
This indicator can be read as an overbought/oversold indicator and as a momentum indicator.
