McClellan Oscillator And Index

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by Andy Richardson
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McClellan Oscillator
Written by Andy Richardson

McClellan Oscillator And Index

The McClellan Oscillator was invented to provide overbought/oversold indication based on the A/D lines. It’s worked out by taking the difference between two EMA’s of the advance-decline figures. The actual periods used are 19 days and 39 days. It oscillates around zero, with the extremes at +100 and -100. If it is +100, the market is considered overbought, and if it is -100 then the market is oversold. Crossings of the zero line can also be used for buying and selling signals. Here’s the DJIA with the McClellan Oscillator added.

McClellan Oscillator

The McClellan Oscillator is used for trading on a short to medium term basis. McClellan also invented the McClellan Summation Index which is used for longer-term review of market breadth. It’s the running total of the McClellan oscillator daily values.

Mc Cellan Oscillator Daily Values

The McClellan Summation Index gives a long range view of market breadth, and can be used to find major turning points.

About the author

Andy Richardson

Andy began his trading journey over 24 years ago while in graduate school, sparked by a Christmas gift of investing money and a book. From his first stock purchase to exploring advanced instruments like spread betting and CFDs, he has always sought to expand his understanding of the markets. After facing challenges with day trading and high-pressure strategies, Andy discovered that his strengths lie in swing and position trading. By focusing on longer-term market movements, he found a sustainable and disciplined approach. Through his website, Andy shares his experiences and insights, guiding others in navigating the complexities of spread betting, CFDs, and trading with a balanced mindset.

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