Advance Decline Volume ratio

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Patent #: US 7,831,984 B2
MarketVolume®'s technology of displaying and presenting intraday volume and volume based technical indicators is protected by copyright law and patent. Unauthorized distribution or reproduction of proprietary technologies will be prosecuted to the maximum extent possible under the law.

We are the only source of advance decline indicators for U.S. indexes and exchanges on daily and intraday level which allows to use it in the indexes technical analysis.

The formula for calculating the A/D issues ratio is simple:

The A/D momentum volume ratio is the line where at each point of time (horizontal scale) you can see the result of dividing of the advancing by declining momentum volume (vertical scale).

In the bottom pane of Chart 2 below, you can see a graphic representation of the A/D volume ratio. The vertical scale provides the actual ratio of advancing to declining issues. You will see a green line when the volume of advancing issues exceeds the volume of declining issues (i.e., an AD volume ratio > 1). The line turns red, when the volume of declining issues surpasses the volume of advancing issues (i.e., an AD volume ratio between 0 and 1).

Chart 2. S&P 500 5-day intraday (one bar = 15 min)
Advance/Decline Volume Ratio

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