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--- market_indicators:ad_vol_percent [2019/06/24 19:38]
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+++ market_indicators:ad_vol_percent [2023/11/21 14:48]
jayanthi [Interpretation]
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 ====== Advance-Decline Volume Percent ======
-===== Introduction =====
+===== What Is the Advance-Decline Volume Percent Indicator? =====
-Advance-Decline Volume Percent is a breadth indicator that measures the percentage of Net Advancing Volume. After the market close, StockCharts.com calculates this indicator for the nine sector SPDRs and several indexes. AD Volume Percent forms the basis for a breadth oscillator or the AD Volume Line. These indicators can then complement the analysis of the underlying security. For example, the AD Volume Line based on AD Volume Percent for the Consumer Discretionary SPDR (XLY) would complement the analysis of XLY. This article will explain how to use this indicator and show SharpChart examples. A sample list of symbols can be found at the end of this article.
+Advance-Decline Volume Percent is a breadth indicator designed to measure the percentage of Net Advancing Volume. AD Volume Percent is the foundation for a breadth oscillator or the AD Volume Line. These indicators can then complement the analysis of the underlying security. For example, the AD Volume Line based on AD Volume Percent for the Consumer Discretionary SPDR (XLY) would complement the analysis of XLY. After the market closes, StockCharts.com calculates this indicator's value for the nine sector SPDRs and several indexes. This article explains how to use this indicator effectively using illustrative SharpChart examples. A list of sample symbols can be found at the end of this article.
-===== Calculation =====
+===== How Do You Calculate Advance-Decline Volume Percent? =====
-StockCharts.com has AD Volume Percent data going back several years. Note, however, that these calculations are based on the list of stocks in the underlying security or index (i.e. XLK), which do change. This means the breadth data from two years ago is based on the then-current holdings, which may be different from the present-day holdings. Even though the holdings for the nine sector SPDRs and major indexes are relatively stable, chartists should keep this in mind if using a long-term chart.
+StockCharts.com has AD Volume Percent data going back several years. Note, however, that these calculations are based on the list of stocks in the underlying security or index (i.e., XLK), which do change. This means the breadth data from two years ago is based on the then-current holdings, which may be different from the present-day holdings. Even though the holdings for the nine sector SPDRs and major indexes are relatively stable, chartists should consider this if using a long-term chart.
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-In the first numerical example, total volume is 41 million shares, advancing volume is 36 million shares and declining volume is 5 million shares. AD Volume Percent is positive (+75.60%) because advancing volume is greater than declining volume. In the second example, total volume is 43 million, advancing volume is 7 million and declining volume is 36 million. AD Volume Percent is negative (-67.44%) because declining volume is greater than advancing volume.
+In the first numerical example, the total volume is 41 million shares, the advancing volume is 36 million shares, and the declining volume is 5 million shares. AD Volume Percent is positive (+75.60%) because advancing volume is greater than declining volume. In the second example, total volume is 43 million, advancing volume is 7 million and declining volume is 36 million. AD Volume Percent is negative (-67.44%) because declining volume is greater than advancing volume.
 {{:market_indicators:ad_vol_percent:advp-01-xlyexam.png|AD Volume Percent - Chart 1}}\\
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 As the chart above shows, AD Volume Percent fluctuates between -100% and +100% with zero as the middle line. A +100% reading means all volume went to advancing stocks. In other words, all stocks closed higher on the day. A -100% reading means all volume went to declining stocks. Extreme readings are the exception rather than the norm.
-===== Interpretation =====
+===== How Do You Interpret Advance-Decline Volume Percent? =====
 As a breadth indicator, AD Volume Percent measures the money flow behind a particular move. An advance with AD Volume Percent exceeding 70% shows strong buying pressure because most of the volume went into advancing stocks. Conversely, a decline with AD Volume Percent dipping below -70% reflects strong selling pressure.