A tool used confirm that a trend is continuing. If there are more declining issues, the trend might see a reversal in the near future. The Advance/Decline Index is calculated by subtracting the number of declining prices from the number of advancing security prices.
Advance/Decline Index
Related Terms
-
The Dow Theory is widely considered one of the earliest forms of technical analysis. It was originally promulgated by Charles H. Dow who noticed that stocks tended to move up or down in trends, and...
-
What is the VIX? The CBOE S&P 500 Volatility Index (VIX) is known as the “Fear Index” because it is such a helpful gauge to measure how worried traders are that the S&P 500 might suddenly...
-
The Parabolic SAR, or Parabolic Stop and Reverse, is a trailing stop-based trading system and is often used as a technical indicator as well. As a technical indicator, Parabolic SAR is known as a...
-
A technical indicator is a mathematical calculation that can be applied to price and volume data. It can be even applied to another technical indicator. The result is a value that is used to...
-
A trend channel is a set of parallel trend lines defined by the highs and lows of an asset’s price action. A trend channel, also sometimes called a price channel occurs when the price is moving...