The advance–decline line is a plot of the cumulative sum of the daily difference between the number of issues advancing, i.e., above the previous day's closing ...Advance–declinelineFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchTheadvance–declinelineisastockmarkettechnicalindicatorusedbyinvestorstomeasurethenumberofindividualstocksparticipatinginamarketriseorfall.AspricechangesoflargestockscanhaveadisproportionateeffectoncapitalizationweightedstockmarketindicessuchastheS&P500,theNYSECompositeIndex,andtheNASDAQCompositeindex,itcanbeusefultoknowhowbroadlythismovementextendsintothelargeruniverseofsmallerstocks.Sincemarketindexesrepresentagroupofstocks,theydonotpresentthewholepictureofthetradingdayandtheperformanceofthemarketduringthisday.Thoughthemarketindicesgiveanideaaboutwhathashappenedduringthetradingday,advance/declinenumbersgiveanideaabouttheindividualperformanceofparticularstocks.Theadvance–declinelineisaplotofthecumulativesumofthedailydifferencebetweenthenumberofissuesadvancing,i.e.,abovethepreviousday'sclosingprice,andthenumberofissuesdeclininginaparticularstockmarketindex.Thusitmovesupwhentheindexcontainsmoreadvancingthandecliningissues,andmovesdownwhentherearemoredecliningthanadvancingissues.TheformulaforADLis:[1]ADline=today′s advancing stocks−today′s declining stocks+yesterday′s AD line value{\displaystyleADline=today's\advancing\stocks-today's\declining\stocks+yesterday's\AD\line\value}TheAdvance/DeclineLineformulacouldbeappliedtovolumeoftheadvancinganddecliningstocks.AD volume line=Advanced Volume−Declined Volume+yesterday′s AD volume line{\displaystyleAD\volume\line=Advanced\Volume-Declined\Volume+yesterday's\AD\volume\line}[2]TheADLisoneoftheoldestindicatorsbasedontheAdvance-DeclineDataanditwasthemostpopularofallinternalindicators.[1]Contents1Divergence2Advance–declinenumbersapplication3Exampleofmarketbreadthchart4ReferencesDivergence[edit]"Divergence"iswhenthestockmarketindexmovesinonedirectionwhiletheADLonthatindexmovesintheoppositedir