The Advances-Declines Indicator and Its Normalized Breadth Measure

Summary

This indicator description explains an Advances-Declines measure built from the instruments shown in a platform’s Market Watch. It counts instruments with bullish and bearish candlesticks, then forms a normalized advance-decline ratio by subtracting the bearish count from the bullish count and dividing by their sum. The indicator displays the positive and negative increments of that ratio. A base-currency input determines which symbols are included in the calculation.

The description attributes the indicator to Sherman and Marian McClellan and says it derives from the RANA measure, which the indicator calculates internally. It is therefore a market-breadth tool: it summarizes the balance of rising and falling instruments rather than the behavior of one asset. Its readings depend on the watchlist, currency setting, and timeframe. Historical data may take time to load on first use or after changing timeframe. The document explains the calculation but provides no trading rules, empirical evaluation, or guidance on interpreting signals.

Key ideas

• The indicator counts bullish and bearish candlesticks across symbols in the Market Watch.
• Its normalized breadth measure compares the difference between advances and declines with their total.
• A base-currency setting controls which symbols enter the calculation.
• The indicator calculates its underlying RANA measure internally.
• The description gives no signal thresholds or evidence of trading performance.

Tags

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