Advance-Decline Line from Bullish and Bearish Candles

Summary

This indicator description defines an advance-decline measure over a chosen period by subtracting the count of bearish candlesticks from the count of bullish candlesticks. It offers two modes. In non-cumulative mode, the displayed value is the difference for the current period; in cumulative mode, that difference is added to the previous day’s indicator value, producing a running series.

The method has two inputs: the calculation period and a switch for cumulative calculation. The description provides the formulas and names the candle counts used, but it gives no empirical results, trading rules, or guidance for selecting the period. It also does not establish that these candle counts are equivalent to the conventional market breadth measure based on advancing and declining securities. Users should interpret the described calculation according to its specific inputs and data source rather than assume broader market coverage.

Key ideas

• The indicator subtracts bearish candle counts from bullish candle counts over a selected period.
• Cumulative mode adds each period’s difference to the previous indicator value.
• Non-cumulative mode reports only the difference for the current period.
• The description specifies a period input and a cumulative-mode toggle.
• It does not provide performance evidence or establish equivalence to conventional breadth measures.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.