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Technical Analysis

Technical Analysis, Studies, Indicators:

Advance Decline Ticks Oscillator

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Advance/Decline Ticks Oscillator (ADT Oscillator) was developed by MarketVolume®'s analysts to monitor advance-decline sentiment in shorter time-periods.

To explain the nature of the ADT calculation, we can compare it to the Advance/Decline and Advance/Decline Momentum calculation:

Advanced Stock:
A Stock is considered to have advanced if it traded above the previous day close. Even if the stock moves down during the trading session and regardless of how strong and how long the downward move is, the stock is considered to be an advanced stock if it is still above their previous day's close.

Advance Momentum Stock:
A Stock is considered to have advanced if its price moved up for more than a minute. No matter where the stock is in relation to the previous day's close, this stock is considered to be an advanced stock if it moves up for more than a minute. As a result, AD Momentum technical indicators are considered to be better suited for use on intraday charts, whereas AD technical indicators can be used on longer time-frames.

Advance Ticks:
A stock could be traded 100 times within a minute. Each trade is one tick and each trade could move the price down or move the price up. For example, even if the price of the stock moved up for more than a minute, this stock could have 90 advanced ticks (90 trades with an upward price move) and 10 declined ticks (10 trades when the price moved down) within this minute. In the next minute, the same stock could still move up, yet have only 60 advance and 40 decline ticks. As you can see, advance/decline ticks are even more sensitive in shorter timeframes than AD momentum indicators. Since the number of ticks can vary from minute to minute, we calculate the summary volume of the advance and decline ticks for a better evaluation of the mood.

By comparing Advance/Decline, Advance/Decline Momentum and Advance/Decline Ticks calculations we can state the following:

  • Advance/Decline data are calculated in relation to the previous trading session close;
  • Advance/Decline Momentum data are calculated in relation to the previous minute close;
  • Advance/decline Ticks are calculated in relation to the previous tick change.

The Advance/Decline Ticks (ADT) Oscillator calculation can be performed in three steps:

  1.  Calculate the Advance Tick Volume – the summary volume of advance ticks within one minute;
  2.  Calculate the Decline Tick Volume – the summary volume of decline ticks within one minute;
  3.  calculate the ADT Oscillator

    ADT = (Advance Tick Volume - Decline Tick Volume) / (Advance Tick Volume + decline Tick Volume) * 100
V. K.

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Technical studies classified by the types of technical analysis
MV Studies - list of technical indicators (studies) developed MarketVolume® team. We are the first who introduced this indicators to the world and at the current moment we are the only company that provides these indicators and we consider ourselves these indicator developers.

Price Studies - information about calculation and using RSI, Stochastics, MACD, and other price based technical indicators (studies) which are available with our charts.

Volume Studies - a list of volume based technical indicators (studies) which are available with our charts.

Advance/Decline Studies -  list of advance decline based technical indicators (studies) which are available with our charts

Volatility Studies - a list of technical indicators (studies) which are used to measure market and security volatility and are available with our charts.

 

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© 1997-2010 Highlight Investments Group. All Rights Reserved.
3/21/2010 - SV3