Description
The McClellan Oscillator is a market breadth indicator based on the difference between the number of advancing and declining stocks on exchange.
There are two modes of calculating the market breadth: simple and ratio-adjusted. In the simple mode, it is calculated as the plain difference between the number of advancing and declining stocks. In the ratio-adjusted mode, the difference of these values is divided by their sum and multiplied by 1000; thus, the market breadth is normalized to the -1000/+1000 scale.
Once the market breadth is calculated, the difference between fast and slow EMAs of this value is the final result.
It is considered a Buy signal when the McClellan Oscillator surpasses the zero level and a Sell signal if it falls below. The primary plot is also accompanied with overbought and oversold levels.
Input Parameters
| Parameter | Description |
|---|---|
exchange
|
Defines market to use advance/decline data from. |
fast length
|
The number of bars used to calculate the fast EMA. |
slow length
|
The number of bars used to calculate the slow EMA. |
over bought
|
Fixes the overbought level. |
over sold
|
Fixes the oversold level. |
ratio adjusted
|
Defines whether or not to use the ratio-adjusted mode of market breadth calculation. |
Plots
| Plot | Description |
|---|---|
McClellanOsc
|
The McClellan Oscillator plot. |
OverBought
|
The overbought level. |
OverSold
|
The oversold level. |
ZeroLine
|
The zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.