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Advance-Decline
Line
As of the close last
Friday, 11/10/2008
charts are courtesy of Metastock
Description: The Advance-Decline Line is
calculated by taking the difference between the number of advancing
issues and the number of declining issues. If there are more advances
than declines, the AD number for that day is positive. If there are more
declines than advances, the AD line for that day is negative. The
Advance-Decline Line tells us whether or not the broader universe of all
the stocks traded in the PSE is advancing in line with the Phisix. As
long as the AD line is advancing with the Phisix, the breadth or health
of the market is good. The danger appears when the AD line begins to
diverge from the Phisix. Historically, the AD line peaks out well ahead
of the market averages, which is why it's watched so closely.
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