InvestorsHub Logo
Followers 417
Posts 52354
Boards Moderated 13
Alias Born 12/16/2001

Re: None

Tuesday, 01/18/2011 11:18:26 PM

Tuesday, January 18, 2011 11:18:26 PM

Post# of 14
Advance/Decline Indicator
Advance/Decline measures the ratio of rising stocks to falling stocks on - in Zweig's examples - the NYSE. It excludes stocks whose price does not change. If 2000 stocks rise and 500 stocks fall, the A/D ratio would be 4.

Zweig uses the example of the rare event of a 10 day A/D ratio of two or more.

If you had invested in the market as a whole each time this has happened, in the following 6 months, your investment would have risen by an average of 19 percent.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.