Log in
Don't have an account?
Sign Up Here →
Forgot Password?

What is the NYSE Advance-Decline Line?

September 17, 2015



    CHART: What is the NYSE Advance-Decline Line?

    Today, we introduce a new (and very important) chart for astute stock traders/investors: the Advance-Decline Line.

    What is the Advance-Decline Line (ADL)? The ADL is a simple measure of all the stocks on a particular stock exchange that are rising (advancing) less the number of declining stocks on a given day. In essence, if more stocks rose than fell on a given day, the ADL will be positive. If more stocks declined in price than rose on the session, the ADL will be negative.

    Technical analysts consider the ADL to be one of the most comprehensive ways to gauge market breadth. (Market breadth is a fancy way of referring to the ratio that compares the total number of rising stocks to the total number of falling stocks.)

    The AMEX, Nasdaq and NYSE all have their own advance-decline chart data. In today’s chart, we focus on the largest of the three: the New York Stock Exchange Advance-Decline Line.

    Interpreting the NYSE Advance-Decline line is rather simple. When more stocks are rising than falling, the line moves above the zero line, which is considered bullish. Inversely, when more stocks are falling in price than are rising, the line moves below the zero line. This, of course, is considered bearish by traders.

    Jerry Robinson

    P.S. To unlock our latest ratings on 40 country-specific ETFs, including buy, hold, and sell signals, subscribe to our Gold member community now.


    Get Instant Access to FTMDaily's Monthly ETF Trend Alerts!
    Wise traders and investors know that U.S. stocks are not the only game in town. Each month, our FTM Insiders get access to our powerful trend analysis on 40 global ETFs.

    Whether you want to invest in Europe, Asia, or Latin America, our ETF Cheat Sheet will keep you on the right side of the market, no matter which global market you want to trade.

    View our Plans and Pricing Here

    Bankruptcy of our Nation: Now in Audiobook Format


    See Today’s Trading Idea Here

    Paid subscriber access only
    View our Plans and Pricing here

    Featured image courtesy of: John David Bigl III / Shutterstock

    Notify of
    Inline Feedbacks
    View all comments

    Please help us spread the word about on Facebook, Twitter,
    and any other social media outlets.

    Silver & Gold

    Call 800-247-2812 now for the best prices on gold and silver coins and receive Free Shipping and Insurance when you mention Follow the Money.

    Weekly Newsletter

    Stay in the loop!
    Sign up today to receive our
    weekly e-newsletter.