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Technical Analysis

Technical Analysis, Studies, Indicators:

Advance Decline Issues

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The term declines represents a cumulative (i.e., running) total of the number of stocks (issues) that have fallen in price compared to their close on the previous trading day. In other words, if the price of a particular stock is currently trading below its closing price from the previous trading day, this stock is considered part of the days declines group.

Conversely, the term advances refers to a cumulative (i.e., running) total of the number of stocks that have risen in price compared to their close on the previous trading day. If the price of a particular stock currently trades above its closing price from the previous trading day, this stock is considered part of the days advances group.

Advances and declines are also called advancing issues and declining issues, respectively.

Chart 1. S&P 500 5-day intraday (one bar = 15 min)
Advancing and declining issues

Advance Decline Issues

In technical analysis, advances and declines data are used to assess market breadth. Looking at the chart above, a technical analyst might say that the market had negative breadth from July 21-26, but that the breadth turned positive on July 27.

Two other commonly used indicators that are based on the advances and declines concept are:

  1. The advance - decline line: This is simply the number of stocks that are currently trading higher (advancing issues) minus the number of stocks currently trading lower (declining issues); 
  2. The advance / decline ratio: This ratio is derived from dividing the number of stocks that are currently trading higher (advancing issues) by the number of stocks that are presently trading lower (declining issues).
V. K.

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Technical studies classified by the types of technical analysis
MV Studies - list of technical indicators (studies) developed MarketVolume® team. We are the first who introduced this indicators to the world and at the current moment we are the only company that provides these indicators and we consider ourselves these indicator developers.

Price Studies - information about calculation and using RSI, Stochastics, MACD, and other price based technical indicators (studies) which are available with our charts.

Volume Studies - a list of volume based technical indicators (studies) which are available with our charts.

Advance/Decline Studies -  list of advance decline based technical indicators (studies) which are available with our charts

Volatility Studies - a list of technical indicators (studies) which are used to measure market and security volatility and are available with our charts.

 

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3/19/2010 - SV1