The Advance/Decline Ratio is a basic market breadth indicator that compares the number of advancing stocks to the number of declining stocks by dividing them as follows: advancing stocks / declining stocks. It uses the same two data series as the Advance/Decline Line
but instead of subtracting them it divides them. It helps identify the breadth of a move in the market. Often a moving average is added to smooth out the indicator and to help assess its direction. It can be used to spot overbought and oversold situations. Please note the Advance/Decline Ratio cannot have a negative value and is best used in combination with other analysis techniques.