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, 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 ...