Advance/Decline Tutorial

Introduction - about technical analysis and using indicators for short-, mid- and long-term trading.

Technical Indicators - short overview of technical indicators, their classification and their role in technical analysis.

Advance and Decline Issues - advance and decline issues (stocks) are basic breadth indicators. In this article you will find a general explanation of advance/decline concepts that should help in understanding more complex breadth indicators based on advance/decline data.

Advance and Decline Volume - If a particular security is currently trading below its close of the previous trading day, its volume is added to the total volume of the declines group. Conversely, advance volume represents the cumulative volume of advancing stocks. This article describes different volume based advance/decline indicators.

Advance/Decline Line - here you can find a detailed explanation of how the "Advance/Decline Line" is constructed and how it can be used in trading.

Advance/Decline Ratio - This article explains the main principles behind the "Advance/Decline Ratio" indicator, how it is built (calculations and formula) and how it can be used.

TRIN (Arms Index) - The TRIN indicator (also known as the ARMS indicator) was introduced during the 1970s. In this article you will learn how it is calculated and how it can be used in technical analysis.

TRIN Examples - are examples of TRIN analysis based on S&P 500 advance/decline data, and an explanation of TRIN signs and signals.

Why Volume - explains by a simple example why volume analysis should be used in a trading system and how it helps to receive a complete picture of a trend.

Volume and Issues - explains how to use advance/decline volume and advance/decline issues (stocks) indicators in technical analysis.

Overbought/Oversold - shows by simple examples a market when it becomes overbought or oversold and volume indicators associated with this.

Why Indexes - explains why and when index-based technical analysis should be used.

Mid-Term Analysis

Based on S&P 500 A/D critical points

Why S&P 500 - explains why the S&P 500 index was used in research dedicated to building a trading system based on advance/decline data.

Mid-Term Support - shows how support levels can be defined by using technical analysis based on advance/decline issues and advance/decline volume data.

Mid-Term Uptrend - a list of the up-trends that follow support signals based on critically low advance/decline ratio readings.

Advance Decline Ratios History - a calculator that helps to see historical occurrences of low and high advance/decline ratio readings for different critical levels.

Weekly Sentiment Reports - Archive of weekly advance decline sentiment reports based on the S&P 500 analysis in 2005 year.

Examples:

Weekly Sentiment Reports Archive