Chart Of The Day - ASI Chart Vs ASI Advance Decline Line (YTD) (06-Jan-2025 15:09:30.273) | InfoWARE Finance
Chart Of The Day - ASI Chart Vs ASI Advance Decline Line (YTD) (06-Jan-2025 15:09:30.273)
(Source: InfoWARE Terminal, Date: 06-Jan-2025)
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Chart Of The Day - ASI Chart Vs ASI Advance Decline Line (YTD) - 06-Jan-2025 15:09:30.273
Chart of the day: ASI Chart Vs ASI Advance Decline Line (YTD) - Market breath
The A/D line is used to show market sentiment, as it tells traders whether there are more stocks rising or falling. It is used to confirm price trends in major indexes, and can also warn of reversals when divergence occurs.
Key Takeaways
- The advance/decline line (A/D) is a breadth indicator used to show how many stocks are participating in a stock market rally or decline.
- When major indexes are rallying, a rising A/D line confirms the uptrend showing strong participation.
- If major indexes are rallying and the A/D line is falling, it shows that fewer stocks are participating in the rally which means the index could be nearing the end of its rally.
- When major indexes are declining, a falling advance/decline line confirms the downtrend.
- If major indexes are declining and the A/D line is rising, fewer stocks are declining over time, which means the index may be near the end of its decline.
(Definition Source: Investopedia.com)
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