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Secure trading with Advance Decline Line indicator

March 27, 2015 10:19 am

Advance Decline Line indicator (ADL) is used for technical analysis to get secure signal for open buy and sell position with confirmation of strong strength of trend and specially when trend try to move reversal. ADL indicator gives us signals as per new support and resistance level like advancing and declining in momentum of trend during the previous and current time period.

advance-declining-indicator

advance-declining-indicator

How to use ADL to get secure trading signals

When ADL is rising or moving upward then the market starts to move in uptrend.
When ADL is falling or moving downward then the market starts to move in downtrend.
Divergence between ADL and chart price, in this condition sideway trend is expected.

The following formula used in Advance Decline Line

ADL = (N of Advancing Issues — N of Declining Issues) + Previous Period’s ADL Value

Recommendations

In my observations that when the market is trading in bullish trend and Advance Decline Line is sloping down and current trend momentum slowdown means reversal of trend is expected. In other condition if market move in continuous upwards ADL gives the signal line stable, in this condition current trend is strong.

Advance Declining Indicator (ADL) is a Premium Indicator and available in Just 100$

Call Us At: 0321-4249491

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