Advance-Decline Line from Positive and Negative Candle Components
Summary
The document describes an advance-decline line indicator intended to show trend strength and possible changes in direction. Its calculation uses the positive and negative components of candlesticks over a selected period and takes their difference. The indicator has a period input and a cumulative option.
With accumulation enabled, the current result is added to the indicator value from the prior bar; without it, the result is not carried forward in that way. The document refers to illustrations of both calculation modes but provides no formulas beyond this description, trading rules, or performance evidence. It also does not specify how the candle components are defined in detail, so the explanation alone is insufficient to reproduce every implementation choice or assess the indicator's predictive value.
Key ideas
- The indicator is presented as a measure of trend strength that may show directional changes.
- It calculates a difference between positive and negative candlestick components over a chosen period.
- A cumulative setting adds the previous bar's indicator value to the new result.
- The document does not provide trading rules or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.