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‡ 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

‡ As the name suggest 'advances' will inform you how the

market has progressed

‡ 'Declinesµ signifies if the market has not performed as

per expectations
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‡ The Advance-Decline ratio is a technical Analysis tool

that indicates market movement

‡ Advance Decline ratio is calculated using the formula:

Advance Decline Ratio = Number of stocks that
advanced/number of stocks that declined
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‡ Generally, it is seen that in Bullish markets the number of

stocks that advances is more than the ones that declines

‡ Generally, in Bearish markets, the converse can be said to

hold true i.e. stocks that advances are less than stocks that
declines

‡ The breadth of market indicator is used to gauge the

number of stocks advancing and declining for the day.
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‡ 'Remains unchanged' is a term used if the market

scenario shows no advances or decline compared to the
earlier day

‡ Advances and declines are calculated from the previous

day¶s closing results

‡ 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
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ãeeping 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.
  

 

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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.
‡ 
 
 Investments in securities are subject to
market risks, please read the SEBI prescribed Combined
RDD prior to investing.
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2006, 2007, 2008 and 2009