Market Breadth Primer: Advance / Decline Ratio and Advance Issues Percentage Conversion

By Lawrence

histogram with Gaussian distribution on blackboardDifferent data feeds offer different favour of the advance decline data to their customers. However, not all trading platforms are capable of letting the users to conduct calculations directly from multiple data series. Hence, odd combinations of the advance decline data are often provided as a workaround for the traders. These vendor provided ratios may not be what you want but don’t worry, following are formulas for converting these numbers.

 

Definitions

A = Advance Issues

D = Decline Issues

Advance Decline Ratio = A / D

Advance Issues Percentage = A / (A + D) * 100

 

Advance Decline Ratio to Advance Issues Percentage

Given R as Advance Decline Ratio,

Advance Issues Percentage = R / (R + 1) * 100

 

Advance Issues Percentage to Advance Decline Ratio

Given P as Advance Issues Percentage,

Advance Decline Ratio = P / (100 – P)

 

Summary

No magic here, just handy formulas derived from their definitions. In case your trading platform only provides you with the advance decline ratio but you like to work with advance issues percentage instead, use the formula above will give you what you need.

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