The Advance-Decline Line (AD Line) is a marker based on Net Advances, specified by the number of rising stocks minus the number of declining stocks.
The Advance Decline Line measures the level of cooperation when the markets are advancing or are in a decline. An Advance Decline Line that ascents and records new highs alongside the basic list demonstrates solid support that is bullish. An Advance Decline Line that neglects to keep pace with the fundamental file and affirm new highs demonstrates narrowing investment and bearish market sentiment.
Points to remember
It rises when Net Advances are sure and falls when Net Advances are negative.
The true estimate of an Advance Decline Line depends upon the starting of the stage.