Defining Advance/Decline Indicators by Fay H. Dworkin, Ph.D.
ARTICLE SYNOPSIS ...Defining Advance/Decline Indicators by Fay H. Dworkin, Ph.D.
The notion is simple. When fewer and fewer issues participate in the upward trend of a primary bull market, ""bad breadth"" warns of a market turnaround. Although it is easy to track advancing and declining issues, it's not as easy to know what to do with the data afterward. I have encountered an astonishingly large number of ways to construct ""advance/decline"" (A/D) indicators. From one period to the next, the closing price of a traded vehicle can advance, decline or remain unchanged. These three outcomes are the