The "Advance/Decline Ratio" is a technique or formula applied to advance/decline issues, advance/decline volume and 52-week new highs and lows.
As an example and using the advance/decline issues, the Advance/Decline Ratio is simply the number of advancing issues divided by the number of declining issues.
The AD result could be applied as follows:
Values higher than one indicate that more stocks are advancing than declining.
Values lower than one indicate that more stocks are declining and advancing.
