ChartWatchers Newsletter logo

THE IMPORTANCE OF THE NY A-D LINE

 | 

Hello Fellow ChartWatchers!

The NY A-D Line

OK, do I really need to write an article explaining this picture? ;-) Seriously, there are more than the proverbial thousand words in the chart above. The NY Advance-Decline Line (the red one) is defined as the cumulative total of the daily NYSE advancers minus the daily NYSE decliners. It is one of THE most important market breadth indicators. When it diverges from the NYSE Composite index, it signals market weakness. In late 1998, it signalled problem ahead for the internet bubble. In early 2000, the A-D Line started moving higher again, but the market didn't follow suit until mid-2002. Now the indices are moving in lock-step again. Will it last? Serious ChartWatchers check the NY Advance-Decline line at least once a week for new market signals.

To create a SharpCharts with the NY Advance-Decline line on it, plot the symbol $NYAD with the "Type" set to "Cumulative". Click the chart above to see an example. You can also use $NAAD to study the Nasdaq Advance-Decline line.

Enjoy this article? Hear more from Chip Anderson at

August 10th & 11th, 2018


See how the experts are protecting themselves from market volatility and reducing risk in uncharted waters

Join us online this August for two full days of investing insights, charting wisdom and market commentary from the industry's leading technicians. Streaming live wherever you are, you'll learn exactly how the experts are navigating the market's changing tides and remaining profitable in all conditions.

Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More
Subscribe to ChartWatchers to be notified whenever a new post is added to this blog!
comments powered by Disqus