What Is the Advance/Decline Ratio (ADR)?
The advance-decline ratio (ADR) is a popular market-breadth indicator used in technical analysis. It compares the number of stocks that closed higher against the number of stocks that closed lower than their previous day's closing prices. To calculate the advance-decline ratio, divide the number of advancing shares by the number of declining shares. It measures the ratio of advancing stocks to declining stocks on a particular exchange over a given period.
- The advance-decline ratio can be calculated for various time periods, such as one day, one week or one month.
- The advance-decline ratio can reveal whether the market is in a bullish or bearish trend.
- The advance-decline ratio may reveal whether the market is overbought or oversold.
The advance decline chart can be calculated by dividing the number of advancing issues by the number of declining issues.
ADR = (Number of Advancing Stocks) / (Number of Declining Stocks)
Smart Karobaar is an innovative mobile application that empowers investors with real-time data to make informed decisions in the NEPSE stock market.
One of the key features of the app is the incorporation of the Advanced Decline Ratio.
Real-Time ADR Updates: The Smart Karobaar app provides real-time updates of the ADR, giving investors an up-to-the-minute assessment of the market sentiment .
Historical ADR Trends: The app also offers historical ADR data, enabling users to analyze and compare trends over different periods.
Customizable ADR Alerts: With Smart Karobaar, users can set personalized alerts based on specific ADR thresholds.
Supporting Technical Analysis: The ADR complements other technical indicators and analysis methods provided by the app, offering a holistic view of the market's performance.
You can scan average directional index in smart karobaar app with following process :
1. First open smart karobaar app
2. Then tap on technical scanner and momentum
3. After that you can click on averaga directional index
4. At last you can scan ADI
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