Advance/decline ratio gives you an idea on what has happened during the trading day is market indexes.We should concentrate our attention to the declined and advanced numbers. These two indicators give you an idea on the overall performance of the market. Additionally, you become familiar with the breadth of the market, not just the individual performance of the stocks.

Advance/decline numbers can be also used in your daily observations of the trades in order to determine whether a particular trend is a false or a spot.

Finally, use advance/decline numbers whenever you need to make a judgment on the performance of the market. These numbers can also give you understanding on the movements of the indexes.