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Divergence – Advance Decline Line Visit MarketGeeks.com

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Advance Decline Line Internal Market Indicator Sometimes Called Breadth Indicator “Measures Cumulative Sum Of The Difference Between Advancing Stocks And Declining Stocks That Make Up NYSE” Moves Up When Index Has More Advancing Stocks

Why Is ADL Important? NYSE, NASDAQ and S&P 500 Are Capitalized Weighted – Allocates More Weight To Large Cap Stocks ADL Is Cumulatively Weighted – All Stocks Weighted Equally What Does This Mean? Market Indexes Move Based On A Handful Of Large Stocks While The ADL Moves Based On All The Stocks That Make Up The NYSE

Divergence Analysis Traders Should Look For Short Term Divergence Between ADL And NYSE NYSE Going Up – ADL Going Down Stock Market Overbought NYSE Going Down – ADL Going Up Stock Market Oversold

NYSE Swings Higher

Advance Decline Line Swings Lower

Stock Market Sells Off After Divergence

NYSE Moving Higher

Advance Decline Line Moving Lower

NYSE Sells Off Next Few Days

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