Stock Chart. Advance Decline, chart, ratio, S&P 500 index, declines, S&P 500 chart, advances, index |
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Advance/Decline Ratio (A/D Ratio)(Indicators based on the "advances" and "declines" concept)Description: Advance decline ratio applied to advances and declines and to volume of advancing and declining stocks. Examples of technical analysis and indicators on the S&P 500 index charts.
The Complete "Advance/Decline
Ratio" article could be found in the tutorial on the MarketVolume's
website. A/D Ratio = (Advances / Declines) Advance/Decline Ratio looks very much like the AD line; however, in contrast to the AD line, the AD ratio cannot be negative. Advance/Decline Issues Ratio (A/D Issues Ratio) Chart 1. S&P 500 5-day
intraday (one bar = 15 min) Advance/Decline Volume Ratio (A/D Volume Ratio) Chart 2. S&P 500 5-day
intraday (one bar = 15 min) Advance/Decline Momentum Ratio (A/D Momentum Ratio) Chart 3. S&P 500 5-day
intraday (one bar = 15 min) The advance/decline ratio is frequently used as an "overbought/oversold" indicator to indicate possible market reversal points. Some analysts also use it to measure market sentiment. Others say that it is a good tool to define when stocks are overvalued or undervalued. The case can be made for each of these interpretations – it all depends on the exact definitions of the terms "overbought/oversold", "market sentiment", and "undervalued/overvalued".
A. v. S. Copyright 2004 Highlight Investments Group. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Tags: index, advances, S&P 500 chart, declines, S&P 500 index, ratio, chart, Advance Decline |
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