Mcclellan Oscillator

The Mcclellan Oscillator is a market breadth indicator used to determine the behavior of the entire market. It was developed by Sherman and Marian McClellan and used on the New York Stock Exchange. The Oscillator is based on Advance-Decline data on a stock exchange, such as NYSE or NASDAQ.

Calculation:

Oscillator = (19-day EMA of advances minus declines) – (39 day EMA of advances minus declines) *””Advances”” is the number of the NYSE listed stocks traded above the previous day’s closing price and “”declines”” is the number of the NYSE listed stocks traded below the previous day’s closing price.

If the McClellan Oscillator is positive, there are more advancing stocks on the NYSE; if the McClellan Oscillator is negative, there are more declining stocks on the NYSE. The oscillator is used as a signal of the overall momentum for a market.