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McClellan
Oscillator
As of the close last Wednesday,
12/24/2008
charts are courtesy of Metastock
Description: Developed by Sherman McClellan, this
oscillator is constructed by taking the difference between two
exponential moving average of the daily Phisix advance-decline figures.
The McClellan Oscillator is the difference between the 19 day (10%
trend) and the 39 day (5% trend) exponential moving averages of the
daily net advance decline figures. The oscillator fluctuates around a
zero line with its upper and lower extremes ranging from +100 and -100.
A McClellan Oscillator reading above +100 is a signal of an overbought
stock market. A reading below -100 is considered an oversold stock
market. Crossings above and below the zero line are also interpreted as
short to intermediate term buying and selling signals respectively.
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