Abbreviation: Volume Advancing/Volume Declining Ratio: Avg Diff
Category: Market Volume Advance / Decline
Input Parameters:
| Name | Range | Default |
| Volume of Advancing Issues | ||
| Volume of Declining Issues | ||
| Avg1 Periods | Int >= 1 | 5 |
| Avg2 Periods | Int >= 1 | 10 |
Calculation:
Avg(X, Avg1 Periods) – Avg(X, Avg2 Periods)
where
X = Volume Advancing/Volume Declining Ratio(Volume of Adv Issues, Volume of Dec Issues)
Volume Advancing/Volume Declining Ratio represents Volume Advancing/Volume Declining Ratio (Upside/Downside Ratio)
Avg represents Simple Moving Average
Discussion:
This indicator attempts to quantify movements in the Volume Advancing/Volume Declining Ratio indicator by calculating the difference between two moving averages. Since it uses simple moving averages (which give equal importance to all the periods within the moving average’s time frame), the indicator treats all periods alike, and does not focus more upon movement between recent or relatively higher volume periods as do the exponential and volume weighted variants.