McCLELLAN OSCILLATOR – With Excel Spreadsheet
The McClellan Oscillator, developed by Sherman and Marian McClellan in the late 1960′s, it is a breadth-based indicator which calculates the difference between two exponential moving averages by using the advances and declines from the same day period.
(19 Day EMA of Advances – Declines) – (39 Day EMA of Advances – Declines)
McClellan Oscillator:
Today’s 10% Index – Today’s 5% Index = Today’s McClellan Oscillator
McClellan Summation Index (Old Method):
Yesterday’s Summation Index + Today’s McClellan Oscillator = Today’s Summation Index
While according to Investopedia “McClellan is a good short-term indicator, anticipating positive and negative changes in the advance/decline stats for better market timing.”
when it bottoms in oversold territory in the area of -100 and below.
When the McClellan Oscillator moves below the Zero Line a SELL Signal is rendered, and a BUY Signal results when it moves above zero.These are not hard and fast rules.As we all know for correct results the data input should also be correct so it should be checked.
Buy signals are indicated when the oscillator advances from oversold levels to positive levels
Sell signals are indicated by declines from overbought to negative territory
Download Sample Excel Spreadsheet
This sheet will help
www.mcoscillator.com/data/osc_data/OSC-DATA.xls
Must read
http://www.mcoscillator.com/learning_center/kb/mcclellan_oscillator/Calculating_the_McClellan_Oscillator/