Advance/Decline Line (ADL) is an indicator that assesses the markets’ general health, setting itself as a sentiment indicator.
Sentiment indicators are useful to analyze expectations of markets or a group of assets globally, whether they are more bullish or bearish.
In addition to knowing the index’s trend, it’s important to verify whether other assets confirm or diverge in market strength, indicating the direction of the current movement.
To add the indicator follow the steps below:
Right-click the chart, select Add Indicator, and type Advance/Decline Line:
Advance/Decline Line (ADL) is a great sentiment indicator. With it, it’s possible to assess the strength of market expectation of a trend - and whether it’s converging with an entire assets basket.
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