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| A/D Volume Ratio = | Advance Volume
Decline Volume |
The A/D momentum volume ratio is the line where at each point of time (horizontal scale) you can see the result of dividing of the advancing by declining momentum volume (vertical scale).
In the bottom pane of Chart 2 below, you can see a graphic representation of the A/D volume ratio. The vertical scale provides the actual ratio of advancing to declining issues. You will see a green line when the volume of advancing issues exceeds the volume of declining issues (i.e., an AD volume ratio > 1). The line turns red, when the volume of declining issues surpasses the volume of advancing issues (i.e., an AD volume ratio between 0 and 1).
Chart 2.
S&P 500 5-day
intraday (one bar = 15 min)
Advance/Decline Volume Ratio
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Disclaimer 1/8/2009 -
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