| Equity Based Analysis > Technical Analysis > Market Breadth Indicators > Advance/Decline Ratio (ADRatio) |
The Advance/Decline Ratio(ADRatio) is the ratio of the number of advancing issues to the number of declining issues.
A value of 2 means that there were twice as many advancing issues as declining issues. Numbers below 1 mean that there were more declining issues than advancing issues.
It can be used as an overbought/oversold indicator. High/Low values implies an overbought/oversold condition and a correction may be expected soon.
The ADRatio is often smoothed with a moving average.
Calculation:
ADRatio = ADV/ DEC
ADV = The number of advancing issues
DEC = The number of declining issues
Inputs:
Group = XU100
Indicates the portfolio, group or index.
Indicator Type: Market Breadth