LinkedInwithBackgroundTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhatistheAdvance/DeclineIndex?Theadvance/declineindexisamarketbreadth indicatorthatrepresentsthecumulativedifferencebetweenthenumberofadvancinganddecliningstockswithinagivenindex.ArisingA/Dindexvaluesuggeststhatthemarketisgainingmomentum, whereasafallingvaluesuggeststhatthemarket maybelosingmomentum.Theadvance/declineIndexisalsocalledtheadvance/declinelineortheA/Dindexorline.Itisusedtohelpconfirmthecurrentstockindextrend,orcanforewarnofstockindexreversalswhentheA/Dindexdivergeswiththestockindexdirection.ImagebySabrinaJiang©Investopedia 2021KeyTakeawaysArisingA/Dindexhelpsconfirmarisingstockindexandshowsstrengthsincemorestocksarerisingthanfalling.AfallingA/Dindexhelpsconfirmafallingstockindex.Thisshowsweaknesssincemorestocksarefallingthanrising.Arisingstockindexwithafallingadvance/declineisabearishdivergenceandindicatesthatthestockmarketriseislosingsteamsincefewerstocksareparticipatingintherise.AfallingstockindexwitharisingA/Dlineisbullishdivergenceandindicatesthestockmarketcouldriseasmorestocksarestartingtomoveup.TheFormulafortheAdvance/DeclineIndexisAdvance/Decline Index=(Advances−Declines)+PIVwhere:Advances=Total number of stocks in the index thatclosed above their prior closing pricesDeclines=Total number of stocks in the index thatclosed below their prior closing prices\begin{aligned}&\text{Advance/DeclineIndex}=\text{(Advances}-\text{Declines)}+\text{PIV}\\&\textbf{where:}\\&\text{Advances}=\text{Totalnumberofstocksintheindexthat}\\&\text{closedabovetheirpriorclosingprices}\\&\text{Declines}=\text{Totalnumberofstocksintheindexthat}\\&\text{closedbelowtheirpriorclosingprices}\\&\text{PIV}=\text{Priorindexvalue}\end{aligned}​Advance/Decline Index=(Advances−Declines)+PIVwhere:Advances=Total number of stocks in the index thatclosed above their prior closing pricesDeclines=Total number of stoc