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Advance decline line

  #7 (permalink)

Ft Lauderdale + FL/USA
Trading Experience: Intermediate
Platform: TOS, OptionHouse, WindoTr
Broker/Data: OptionHouse, BarCharts
Favorite Futures: ES, ZB, CL, NQ, HG
Posts: 5 since Mar 2017
Thanks: 1 given, 2 received

Jamie818 View Post
Ah yes of course. This gets back to my original point of what is advancing and declining. So an advancing issue is one up relative to the previous close. I was not asking the right question which would have been what does an advancing and declining stock mean? And the VOLD shows volume trading in those two respective groups. thanks again Pugpack

You are confusing a few things. You are asking about advancing and declining issues and then referencing VOLD. The first refers to issues or stocks the VOLD refers to advancing and declining volume.

Example - you have 1000 stocks in the NYSE. You are watching 5 minute chart of the Advance minus the declines. The 5 minute candle is in constant flux and at the end of the 5 minute period 600 stocks were up and and 400 stocks were down. The candle would reflect +200 at the close of the 5 minute bar. The next candle begins and is in flux at the end of the next 5 minutes 700 stocks were up and 300 were down from the close of the prior 5 minute candle. The cumulative is now at +600, and so on. So the Adv/Dec is just looking at the difference between the total number of stocks in the NYSE or NASDAQ, respectively that are UP and DOWN respectively.

Now apply the same thing to volume and then ticks.


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