AD-LINE-TECHNICAL-INDICATOR

AD-Line indicator stands for the advance/decline line (A/D).  It is a technical indicator that helps in tracking the difference between rising and declining shares daily. AD-Line helps show the trend of the market index and looks like a line as shown in the below-mentioned image. The Ad line is commonly used by all the technical experts of the market as it helps track out the future trend on the Index based on its result.

Researchers use it to know about the price trend of the stocks in the market mainly of those stocks that are showing heavy movement in the market. Ad line makes use of a mathematical formula that helps in calculating the price movement of a stock index It simply works on how many shares are increasing and decreasing in their value.

Point to focus on

• When the stock market is moving in a positive trend but AD line is falling because of declining stocks that means few stocks are showing uptrend but the market is going to   decline soon and the really will come to the end.
• When the market trend is falling and the AD line is also falling that confirms the downtrend.
• AD line is rising and the stock Market Index is also showing uptrend then the positive movement is expected
• The Ad-line indicator is also used to show how many shares are participating in the market rally.
• AD line Indicator gives us a very clear view of the upcoming market trend in a short frame of time.