Technical Analysis, Studies, Indicators:
Advance Decline
Issues Oscillator
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The "advance-decline issues oscillator" represents the difference between the
number of advancing and declining issues. To calculate the A-D issues
Oscillator,
we simply subtract the number of stocks that belong to the declines group
from the number of stocks that belong to the advances group;
The A-D Issues Oscillator is considered one of the
best indicators for the markets overall health. A large positive number
indicates a strong market performance, while a negative result corresponds to a
weak showing.
The formula for calculating the
advance-decline issues oscillator is simple:
A-D Issues Line = Advancing Issues -
Declining Issues
A positive A-D issues oscillator value means more stocks are currently
advancing than declining. A negative value represents a situation where more
stocks are declining than advancing. In chart 1 below, you can see an example of
the S&P 500 A-D Issues Oscillator. Positive values are charted in green, negative values in
red.
Chart 1. NASDAQ 100 30-day
intraday (one bar = 30 min)
Advance-Decline Issues Oscillator
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