The McClellan Oscillator

Created 1969, the McClellan Oscillator is recognized by technical analysts as the essential tool for measuring acceleration in the stock market. Using advance-decline statistics, it gives overbought and oversold indications, divergences, and measurements of the power of a move.

 
May 20, 2004

The McClellan Oscillator & Summation Index

Every day that stocks  are traded, financial publications list the number of stocks that closed higher (advances) and that closed lower (declines). The difference  between these numbers is called the daily breadth. The running cumulative  total of daily breadth is known… more
 
Jul 28, 2010

More on How NOT To Use Indicators

The assault on technical analysis continues, from people who do not understand it and do not care to take time to learn how to do things properly.  I wrote previously about a blogger who likes to write dismissive articles about technical… more
 
Jul 19, 2010

How NOT To Use Indicators

Several subscribers recently forwarded to us a link to a web article claiming that the McClellan Oscillator and Summation Index do not work. Unfortunately, the author of the article did not spend time learning what these indicators measure, nor how to… more
 
Apr 14, 2006

Calculating the McClellan Oscillator

The McClellan Oscillator and Summation Index were developed by my parents back in 1969.  Calculation of these indicators starts with the daily A-D difference, as you have probably already discerned.  Two different exponential moving averages, the 10% Trend and the 5%… more
 
Nov 18, 2004

Oscillator Breaking Zero

There are several different issues simultaneously wrapped up in your question, and I will try to address a few of them. First, taking the Oscillator down to zero is not that hard to do under the current conditions (high Summation Index). … more