The Advance/Decline Cumulative Average study is a low-frequency trading technical indicator based on advance/decline analysis performed on data provided by specified market.

This study calculates two values: first one is ratio of difference between the number of advances and declines to the overall number of stocks, and the second is cumulative sum of the first value. Two plots are displayed: the cumulative sum and its SMA calculated over the specified number of bars.

When the cumulative sum gets higher than the average, it might be considered a Buy signal; when it falls below, the Sell signal might be recognized.


Input Parameters

Parameter Description
exchange Defines the market providing the advance/decline data.
length The number of bars used in calculation of the SMA.


Plot Description
CumulAD The cumulative sum of Advance/Decline value.
AvgCumulAD Simple moving average of CumulAD.

Further Reading

1. "Low-Frequency Trading" by Ron McEwan. Technical Analysis of Stocks & Commodities, April 2013.


*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.