| Advance/Decline
Line - A/D |
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A
technical analysis tool representing the total of differences between
advances and declines of security prices. The advance/decline line
is considered the best indicator of market movement as a whole, stock
indices such as the DJIA only tell
us the strength of 30 stocks where as the A/D line provides much more
insight.
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If
the markets are up but there are more declining stocks than advancing
ones it's usually a sign that the markets are losing their breadth.
If the number of advancing issues are dominating the declining issues
and the market is then said to be healthy. If it is falling, then
the market is not healthy. |
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Dictionary
