Wednesday, February 26, 2003 11:56:09 AM
McClellan Oscillators
NYSE
NASDAQ
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http://stockcharts.com/def/servlet/SC.web?c=$NAMO,uu[w,a]daclnyay[df][pa50!a-50][vc60][iLa12,26,9]&a...
Full Definition http://stockcharts.com/education/Resources/Glossary/McClellanOscillator.html
The McClellan Oscillator is a breadth indicator derived from each day's net advances, the number of advancing issues less the number of declining issues. Subtracting the 39-day exponential moving average from the 19-day exponential moving average of net advances forms the oscillator.
Similar to MACD, the McClellan Oscillator is a momentum indicator that is applied to the advance/decline statistics. When the 19-day EMA (shorter moving average) moves above the 39-day (longer moving average) EMA, it signals that advances are gaining the upper hand. Conversely, when the 19-day EMA declines below the 39-day EMA, it signals that declining issues are dominant. As a momentum indicator, the McClellan Oscillator attempts to anticipate positive and negative changes in the AD statistics for market timing.
Buy and sell signals are generated as well as overbought and oversold readings. Usually, readings above +100 are considered overbought and below -100 oversold. Overbought and oversold readings may vary among indices and historical precedent. Buy signals are generated when the oscillator advances from oversold levels to positive territory. Sell signals are generated on declines from overbought to negative territory. Traders may also look for positive or negative divergences to time their trades. A series of rising troughs would denote strength, while a series of declining peaks weakness.
Created 2/26/03: First Post of these charts
Kirk's Market Thoughts: http://www.suite101.com/discussion.cfm/investing/55973
Free Issue of me Newsletter: http://home.netcom.com/~kirk_69/Savvy/Promo/WhatLetter2Buy.html
NYSE
NASDAQ
http://stockcharts.com/def/servlet/SC.web?c=$NAMO,uu[w,a]daclnyay[df][pa50!a-50][vc60][iLa12,26,9]&a...
Full Definition http://stockcharts.com/education/Resources/Glossary/McClellanOscillator.html
The McClellan Oscillator is a breadth indicator derived from each day's net advances, the number of advancing issues less the number of declining issues. Subtracting the 39-day exponential moving average from the 19-day exponential moving average of net advances forms the oscillator.
Similar to MACD, the McClellan Oscillator is a momentum indicator that is applied to the advance/decline statistics. When the 19-day EMA (shorter moving average) moves above the 39-day (longer moving average) EMA, it signals that advances are gaining the upper hand. Conversely, when the 19-day EMA declines below the 39-day EMA, it signals that declining issues are dominant. As a momentum indicator, the McClellan Oscillator attempts to anticipate positive and negative changes in the AD statistics for market timing.
Buy and sell signals are generated as well as overbought and oversold readings. Usually, readings above +100 are considered overbought and below -100 oversold. Overbought and oversold readings may vary among indices and historical precedent. Buy signals are generated when the oscillator advances from oversold levels to positive territory. Sell signals are generated on declines from overbought to negative territory. Traders may also look for positive or negative divergences to time their trades. A series of rising troughs would denote strength, while a series of declining peaks weakness.
Created 2/26/03: First Post of these charts
Kirk's Market Thoughts: http://www.suite101.com/discussion.cfm/investing/55973
Free Issue of me Newsletter: http://home.netcom.com/~kirk_69/Savvy/Promo/WhatLetter2Buy.html
Kirk out
#board-1574
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