So you're absolutely sure that the 5% component is associated with the 19 day EMA and that when either the 5% or 10% component is above or below their zero lines it's associated with where the A/D line is in relation to these same EMA's??
And if you wish to continue to be stubborn on this subject matter as to maybe learning something important that could help your own analysis in the future, is there ANYONE out there who would really like to know exactly what these components represent once and for all??
Fib
Fib, you serious ? Please, Stop embarrassing yourself. If you want to sell a service interpreting some indicators, at least understand how they are calculated.
5% components IS the 19 EMA. and 10% component IS the 39 EMA. The original calculation by applying a smoothing constant, as opposed to the exponentially weighted calculation that is being used in standard charting software.( but pretty darn close analogy )
This is the original method for calculating the exponential moving average.
Here, from http://www.mcoscilla...lan_Oscillator/ You could've bothered to at least read that one.
" 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% Trend, are calculated to smooth the daily A-D data, and the McClellan Oscillator is the numerical difference between these two moving averages. The Summation Index is the total of all previous McClellan Oscillator values, and it is neutral at +1000 when calculated and calibrated properly.
Excel does contain an "exponential smoothing" routine in its Data Analysis set (see its Tools menu), and the description shows it to the same thing as an exponential moving average as most technical analysts would define the term. But one need not go through the complex indicator menus in Excel to construct these indicators.
The 10% or 5% figure refers to the smoothing constant of the moving average. The best way to think of it is that for the 10% Trend (for example), the new value for today's 10% Trend would be moved from yesterday's value by an amount equal to 10% of the difference between today's price (or A-D difference) and yesterday's 10% Trend value. Stated algebraically, it reads:
10%T(today) = 10%T(yesterday) + 0.1x[Price(today) - 10%T(yesterday)]
This can be further reduced to read:
10%T(today) = 0.9 x 10%T(yesterday) + 0.1 x Price(today)
The same calculation would work for a 5% Trend except that you would use 0.95 and 0.05. The reference to a set number of days (e.g. 19 or 39) refers to a formula which states that the smoothing constant can be chosen to correspond to a certain period by using the formula 2/(n+1), where n is the number of days. Thus a 19-day period would calculate out to:
2/(19+1), or 2/20, or 1/10, which is really 10%. "
And here is is in an easy to understand chart form ...
I can't think of two other posters here who have more to say about bullishness and bearishness, pretty much respectively, and I very much appreciate both of them.
As for me, I constantly try to "simplify, simplify, simplify." It's hard enough to keep for me to keep my head on straight without things getting to complicated, especially when things are not instantly going my way.
So...so all I look at in relation to the MCO is the NYMO and the NYSI. While I may take an occasional glance at the NAMO and NASI, my index trading is almost exclusively underscored by movements on the NYMO and NYSI. My short term trades, usually leveraged ETFs, are taken on the NYMO, and my longer-term trades, usually stocks, are taken according to the NYSI's direction. I probably should but I don't care where the five and 10 percent components are. Too complicated for me. 
The great thing about the NYMO high below highs (like in July) and the lows above lows (now, since 8/22)) is they usually give advance warnings for turns in the market. For me, the lows above lows are more telling in bull markets, and the highs below highs in bear markets. But trading them can be treacherous, which is why I have often called the low above above a low on the NYMO an aggressive trader's buy (they can only be taken with protective stops). For instance, almost everything today is below that 8/22 low above a low. But the TQQQ and TNA I bought on today's open are both up (3 percent on TNA, 2 percent on TQQQ) now with breakeven stops.
The great thing about the NYSI is it is market context. Bullish stocks sometimes run up on their own but with a rising NYSI at their back they run like crazy. I was going to point to TSLA again as an example but for variety's sake take a look at YELP or FB on the NYSI's last rise. When the NYSI is declining bearish stocks fall like rocks, like XOM or UAL or the housing stocks. I have a buddy who holds 20 big blue chips at all times. I ran his stocks the other day to see how they were doing since the NYSI turned down on July 29th. One was flat, one was up (MSFT, on the news Balmer's passing), and the other 18 were all down, a couple as much as 10 percent. This is the power of breadth.
So where are we now as far as I can see? I'm partially long, betting the lows above lows on the NYMO can follow through to turn NYSI up and produce for a rally that can run for a month or six weeks or so. But I can see the NYSI is still going down so the bears still have the ball and so I have tight stops just in case I'm wrong.
Good luck and good trading.
