Advance Decline Line Adline - Index cumulative volume

Decline of the group Advance - Advance Decline Line Adline - Index cumulative volume

One of the best-known segment of the line Refuse Advance Decline indicators is Adlin. Being characteristic of this indicator the size of the market is the figure of the ratio of increase in values and fell within a certain time, as a summation continues. Specifically, the first difference between the top and fell is formed, then add up to what this looks like in terms of formulas as follows:

Adlin (t) = Adlin (t-1) + (adAdv (t) - addec (t))

What is the use of the values of Adlin is far developed mainly for measuring the tendency of the market size. Basically, it is assumed that a higher index is accompanied by an overhang from growing, which falls on the other is characterized by a higher incidence of dwindling stocks. The value of the indicator is now at an aid to mapping the course of this distribution and thus all the differences and, consequently, any turning points in the table to identify the course.


From Adlin we come directly to the index of cumulative volume, as we do not use the number, but the volume of shares increased or decreased in the calculation of indicators. Similarly, namely the difference between the actions on the rise and fall is the time to summarize. The determination of the indicator is calculated as follows:

CVI (t) = CVI (t-1) + (VolAdv (t) - VolDec (t))

Regarding the possibilities of interpretation applies to the Advance Decline line is said. The differences between the index and indicator development may indicate the possible change in trend.


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