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Technical Analysis, Studies, Indicators:

Advance Decline Momentum Volume


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We have developed a new intraday indicator (never before made available), which we call "momentum advances and declines volume" ("Momentum AD Volume)".

Decline Momentum volume is volume on stocks (issues) that have fallen in price compared to their close on the previous bar. To compare - Decline Volume is cumulative volume on stocks (issues) that have fallen in price compared to their close on the previous trading day.

Advance Momentum volume is volume on stocks (issues) that have risen in price compared to their close on the previous bar. To compare - Advance Volume is cumulative volume on stocks (issues) that have risen in price compared to their close on the previous trading day.

Chart 1. S&P 500 5-day intraday (one bar = 15 min)
Advances and Declines Momentum Volume (Momentum AD Volume)

S&P 500 chart - advance decline volume

Momentum AD volume shows the actual number of shares that traded in the advances and declines volume segments (for a given bar). Advances momentum volume reflects the actual volume of those stocks that presently belong to the advances group. For declines momentum volume, simply adapt the above explanation.

Momentum AD volume readings are not affected by the volume activities of previous bars (i.e., these readings are not cumulative) - they simply reflect the volume activity that is currently taking place within the present bar (whatever the length of that bar). For instance, the chart above reveals that on July 27, even though the S&P 500 index traded in positive territory right from the opening bell, the trading activity of the stocks in the advances and in the declines groups were almost identical. However, note how at the end of the day, the activity of the stocks in the advances group increased dramatically - you can see a big surge of advances momentum volume (the green line) toward the end of the day.

The main difference between momentum AD volume and cumulative AD volume is that momentum AD volume readings are not cumulative; they simply reflect the volume activity associated with a particular bar.

V. K.

Copyright 2004 - 2010 Highlight Investments Group. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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Technical studies classified by the types of technical analysis
MV Studies - list of technical indicators (studies) developed MarketVolume® team. We are the first who introduced this indicators to the world and at the current moment we are the only company that provides these indicators and we consider ourselves these indicator developers.

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Advance/Decline Studies -  list of advance decline based technical indicators (studies) which are available with our charts

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© 1997-2010 Highlight Investments Group. All Rights Reserved.
3/19/2010 - SV1