Indicator ADL (Advances/Declines Line) shows the ratio of positive and negative price increments over a specified time interval.
It has two input parameters:
- Period - calculation period;
- Use Cumulative mode - use the "cumulative" algorithm of calculations (Yes/No).
Calculations:
ADL = (Up - Dn)
If Use Cumulative mode = Yes, then:
ADL = (Up - Dn) + ADL of the previous day
where:
Up = Up(Period) Dn = Dn(Period)
- Up - number of bullish candlesticks over the period;
- Dn - number of bearish candlesticks over the period.
Fig.1 Use Cumulative mode = Yes
Fig.2 Use Cumulative mode = No
