What is the difference between a “net rising index” and a “diffusion index”?
Some indicators use a net rising index defined as the percentage reporting increases minus the percentage reporting decreases. A diffusion index is the percentage reporting increases plus half the percentage reporting no change. The difference between the two is the format in which the information is presented. It is straightforward to convert from one format to the other. The net rising index is the diffusion index minus its complement (which is 100 minus the diffusion index). For example, a diffusion Index of 55 converts to a net rising index of 10 [55 - (100-55) = 10].