The advance/decline line (A/D) is a technical indicator that plots the difference between the number of advancing and declining stocks on a daily basis.LinkedInwithBackgroundTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhatIstheAdvance/DeclineLine(A/D)?Theadvance/declineline(A/D)isatechnicalindicatorthatplotsthedifferencebetweenthenumberofadvancinganddecliningstocksonadailybasis.Theindicatoriscumulative,withapositivenumberbeingaddedtothepriornumber,orifthenumberisnegativeitissubtractedfromthepriornumber.TheA/Dlineisusedtoshowmarketsentiment,asittellstraderswhethertherearemorestocksrisingorfalling.Itisusedtoconfirmpricetrendsinmajorindexes,andcanalsowarnofreversalswhendivergenceoccurs.TradingView.KeyTakeawaysTheadvance/declineline(A/D)isabreadthindicatorusedtoshowhowmanystocksareparticipatinginastockmarketrallyordecline.Whenmajorindexesarerallying,arisingA/Dlineconfirmstheuptrendshowingstrongparticipation.IfmajorindexesarerallyingandtheA/Dlineisfalling,itshowsthatfewerstocksareparticipatingintherallywhichmeanstheindexcouldbenearingtheendofitsrally.Whenmajorindexesaredeclining,afallingadvance/declinelineconfirmsthedowntrend.IfmajorindexesaredecliningandtheA/Dlineisrising,fewerstocksaredecliningovertime,whichmeanstheindexmaybeneartheendofitsdecline.TheFormulaForAdvance/DeclineLine(A/D)Is:A/D=Net Advances+{PA, if PA value exists0, if no PA valuewhere:Net Advances=Difference between number of dailyascending and declining stocksPA=Previous AdvancesPrevious Advances=Prior indicator reading\begin{aligned}&\text{A/D}=\text{NetAdvances}+\begin{cases}\text{PA,ifPAvalueexists}\\\text{0,ifnoPAvalue}\\\end{cases}\\&\textbf{where:}\\&\text{NetAdvances}=\text{Differencebetweennumberofdaily}\\&\text{ascendinganddecliningstocks}\\&\text{PA}=\text{PreviousAdvances}\\&\text{PreviousAdvances}=\text{Priorindicatorreading}\\\end{aligned}​A/D=Net Advances+{PA, if PA value exists0, i