Advances and Declines - A Kotak Securities Review

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Kotak Securities reviews Advances and Declines of Stock Markets

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Advances and Declines - A Kotak Securities Review

  1. 1. Advances and Declines<br />
  2. 2. What are Advances and Declines?<br />
  3. 3. Advances and Declines<br />Advances and declines give you an indication of how the overall market has performed. This gives you a good overview of the general market direction<br />As the name suggest 'advances' will inform you how the market has progressed<br />'Declines‘ signifies if the market has not performed as per expectations<br />
  4. 4. What does Advance-Decline Ratio imply?<br />
  5. 5. Advances and Declines<br />The Advance-Decline ratio is a technical Analysis tool that indicates market movement<br />Advance Decline ratio is calculated using the formula:<br /> Advance Decline Ratio = Number of stocks that advanced/number of stocks that declined<br />
  6. 6. How does Advance-Decline Ratio affect?<br />
  7. 7. Advances and Declines<br />Generally, it is seen that in Bullish markets the number of stocks that advances is more than the ones that declines<br />Generally, in Bearish markets, the converse can be said to hold true i.e. stocks that advances are less than stocks that declines<br />The breadth of market indicator is used to gauge the number of stocks advancing and declining for the day.<br />
  8. 8. What else there is to know about Advances and Declines?<br />
  9. 9. Advances and Declines<br />'Remains unchanged' is a term used if the market scenario shows no advances or decline compared to the earlier day<br />Advances and declines are calculated from the previous day’s closing results<br />However, a market that is significantly on one side either in terms of advances or declines, may have a hard time reversing out of that direction the next day<br />
  10. 10. Advances and Declines<br />Remember: Keeping a track of the Advance and Decline ratio will help you gauge the stocks worth investing along with the performance of stocks you have invested in.<br />
  11. 11. Thank You!<br /> Questions? Feedback? <br />Click on any of these -<br />Read More<br />Facebook<br />Twitter<br />Website<br />
  12. 12. Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130. <br />Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.<br />* Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009<br />

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