Advance decline ratio: Indicator is particularly useful in

Advance decline ratio indicator is particularly useful in identifying potential trends and reversals, as well as determining overbought or oversold market conditions. By analysing the ADR, traders and investors can assess the strength and sustainability of market rallies or declines. Discover how the Advance-Decline Ratio can enhance your trading strategies. Learn to interpret this key market breadth indicator, define market trends, and understand its impact on sectoral indices. Perfect for traders looking to gain deeper insights into market health and sentiment. What Is the Advance Decline Ratio ? The advance decline ratio (ADR) compares the number of stocks that closed higher (advancers) with those that closed lower (decliners) during a trading session. It’s a real-time reflection of whether bullish or bearish forces dominate the market. Traders often confuse ADR with the advance-decline line.