The Advance-Decline Line Redux by Robert Kinsman
ARTICLE SYNOPSIS ...V.14:1 (29-33): The Advance-Decline Line Redux by Robert Kinsman
The advance-decline line is an ongoing sum of the difference between the number of stocks closing higher minus the number of stocks closing lower each day. Here's a primer on how to use a variation on this indicator.
Often in technical analysis, a commonly used market indicator can be expanded or modified to improve its value. One case in point is the ubiquitous advance-decline line. Many technicians have found that it can be smoothed to provide oscillators that reveal both overbought and oversold levels, plus important short- ...