Based on the description in Murphy, Tech. Analysis of Financial Markets. Wikipeadia also has a good description:
en.wikipedia.org
Without warranty - please trade based on your own analysis and let me know if you find any errors in the script.
The Advance-Decline Indicator is a market breadth indicator
based on the smoothed difference between advancing and declining issues.
The indicator shows when the stock market is overbought (and a correction
is due) and when it is oversold (and a rally is due).
The Advance-Decline Indicator is a 10-period exponential moving average of
the...
This is the second part of TFS trading strategy. The concept of this
indicator is similar to that of On-Balance Volume indicator (OBV). It
is calculated according to these rules:
If Close > Open, Volume is positive
If Close < Open, Volume is negative
If Close = Open, Volume is neutral
Then you take the 7-day MA of the results.
OBV is colored green if CCI > threshold, red if CCI < threshold.
Both "threshold" and "CCI Length" can be customized using the options page.
Indicator also displays a 13EMA (length can be changed) over OBV.
Everyone uses OBV, right? This indicator makes it easy to read it by building an oscillator out of it.
Also, now look for OBV divergences easily :)
Appreciate any comments / thoughts.
![EURUSD: [RS]Price Advance & Decline Range Analysis](https://s3.tradingview.com/q/Qp1UXF3j_mid.png "[RS]Price Advance & Decline Range Analysis")
