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McClellan Oscillator


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#1 Kloto

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Posted 17 August 2010 - 05:39 AM

Hello guys, Does anybody know where one can find McClellan Oscillator in real time? Or maybe you can better explain to me how to build it myself. I know it is based on MAs for advances and declines, but I don't know the exact procedure of constucting it. Thanks. Kloto

#2 maineman

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Posted 17 August 2010 - 07:10 AM

In my opinion its and end of the day analysis tool. Real Time you have TICK which is widely available to tell you about breadth. After that intraday you have advancing shares, declining shares, advancing volume and declining volume to alert you . Finally, as a metric of the latter sentence you have TRIN which can be useful by its extremes and by its directional intraday flow. mm
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#3 diogenes227

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Posted 17 August 2010 - 11:59 AM

Trade Station has it built in as an indicator with real time data.

Otherwise, these links are worth checking out.

Tom McClellan on A/D data

You can set it up in Excel and plug in the numbers manually every so often to see where it's at. Sometimes it's nice to know what it's doing intraday but it's the end of the day that really matters.

THE FORMULA

And this one is fun to take a look at, although I don't know how they calculate these individually. Maybe on the holdings of the ETFs?

ETF McClellan breath rankings

Good luck and good trading. :)
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#4 Kloto

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Posted 17 August 2010 - 12:15 PM

Thanks a lot! Happy trading to you too :-).

#5 diogenes227

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Posted 22 April 2011 - 02:54 PM

McClellan Oscillator
From Wikipedia, the free encyclopedia


The McClellan Oscillator is a market breadth indicator used by financial analysts of the New York Stock Exchange to evaluate the rate of money entering or leaving the market and interpretively indicate overbought or oversold conditions of the market.[1]
Contents
[hide]

* 1 History
* 2 How it works
* 3 References
* 4 External links

History

Developed by Sherman and Marian McClellan in 1969, the Oscillator is computed using the exponential moving average (EMA) of the daily ordinal difference of advancing issues (stocks which gained in value) from declining issues (stocks which fell in value) over 39 trading day and 19 trading day periods.

How it works

The simplified formula for determining the Oscillator is:

Oscillator = (19 day EMA of Advances minus Declines) − (39 day EMA of Advances minus Declines)

The McClellan Summation Index (MSI) is calculated by adding each day's McClellan Oscillator to the previous day's Summation Index.

By using the Summation Index of the Mcclellan Oscillator, you can judge the markets overall bullishness or bearishness.

MSI properties

* above zero it is considered to be bullish (positive growth)
* below zero it is considered to be bearish (negative growth)

The Summation Index is oversold at -1000 to -1250 or overbought at 1000 to 1250. [1]

The number of stocks in a stock market determine the dynamic range of the MSI. For the NZSX (one of the smallest exchanges in the English speaking world) the MSI would probably range between (-50 ... +50), the 19 and 39 constants (used for the US exchanges) would have to be revised. For the NZSX a MSI moving average mechanism might be needed to smooth out the perturbations of such a small number of traded stocks.

References

1. ^ a b Illustrative description by McClellan Publications of the McClellan Oscillator

External links

* Investopedia description of the McClellan Oscillator
* Current NYSE McClellan Oscillator and Summation Index at StockCharts.com

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"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx.

I spent half my money on gambling, alcohol and wild women. The other half I wasted, W.C. Fields.