Advance-Decline Indicator by HPotter

Advance/Decline Line Technical Indicators

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 difference between the number of advancing and declining issues.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 08/09/2014
// 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 difference between the number of advancing and declining issues.
////////////////////////////////////////////////////////////
study(title="Advance-Decline Indicator")
Length = input(10, minval=1)
BuyBand = input(-1500)
SellBand = input(1500, minval=1)
hline(SellBand, color=red, linestyle=line)
hline(BuyBand, color=green, linestyle=line)
xOvbOvs = ema(close, Length)
clr = iff(high > SellBand, red, iff(low < BuyBand, green, blue))
plot(xOvbOvs, color = clr, style  = histogram, linewidth = 2, title="Advance-Decline Indicator")