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Gauging Momentum with the NYSE Advance / Decline Line |
This video is sponsored by:
by S. Wade Hansen
The NYSE Advance / Decline Line
The NYSE Advance / Decline (A/D) Line is a market breadth indicator that compares the number of stocks on the New York Stock Exchange (NYSE) that are advancing---increasing in price---with the number of stocks that are declining---decreasing in price. 
What the NYSE Advance / Decline Tells Us
The NYSE A/D Line tells us one basic thing: whether bullish or bearish momentum is pushing the stock market.
When more stocks on the NYSE are increasing in value than are decreasing in value, the A/D Line moves higher. And when the A/D Line is moving higher, you know that bullish momentum in the market is increasing.
When more stocks on the NYSE are decreasing in value than are increasing in value, the A/D Line moves lower. And when the A/D Line is moving lower, you know that bearish momentum in the market is increasing.
NEXT: Learn more about The NYSE Highs / Lows Line.
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