The 4 core market internals consist of: Breadth Ratio Advance Decline Line Trin Tick You can use them to better pinpoint your entry and exits and get a good gauge of the market. In the video below I show how to setup market internals on the thinkorswim platform.
The advance decline line (aka AD line) is a number composed of the net sum of advancing stocks minus the number of declining stocks. This number is calculated separately for the NYSE and the NASDAQ. This is one of four market internals indicators, the other 3 are Market Breadth, the NYSE tick, and the Trin. Example: A day with 500 advancing stock and 2000 declining stocks would yield an a/d line of -1500. How to Use the Advance Decline Line…