What is the Advance – Decline Ratio?

This post is designed to provide the reader with general information concerning what the “advance – decline” is.  Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek a qualified professional.

The advance – decline ratio is a measurement of the number of stocks that have advanced and the number of stocks that have declined over a particular period of time.  It is the ratio of one to the other and it shows the general direction of the stock market.  The measurement is considered “bullish” if more stocks advance than decline on any trading day.  The ratio is “bearish” if declines outnumber advances.  How steep the ratio is reflects whether a strong bull or bear market is underway.