Define: Advance/Decline Line

UK Accounting Glossary

Definition: Advance/Decline Line



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Full Definition of Advance/Decline Line


The advance/decline line is a technical indicator used to graph the difference between the number of advancing stocks and the number of declining stocks for a given day. The advance/decline line goes up if this difference is positive. The advance/decline line goes down if the difference is negative. Therefore, a rising advance/decline line indicates a bullish market, while a declining advance/decline line indicates a bearish market. Typically, the advance/decline line is used to evaluate short-term trends as opposed to trends over several years. Many traders use the advance/decline line to validate trends in the market and their likelihood of continuing. If markets are up but the advance/decline line is falling, traders view this as a signal that the market may soon reverse direction. Also, if markets are up and the advance/decline line is rising, this is an indication of a continuing robust market.


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Definition Sources


Definitions for Advance/Decline Line are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.