The A/D indicator measures market consensus within a trend.

A market increases sustainably when prices rise and the number of advancing stocks exceeds the number of declining ones.

Conversely, if the market declines and the number of declining stocks is greater than the number of advancing ones, the downward trend will likely continue.

At a peak, if the VNINDEX increases but the A/D ratio decreases, this suggests a distribution phase and potential risk.

At a bottom, if the VNINDEX continues to drop but the A/D ratio increases, this indicates that investors are buying in, which is a positive signal.