Nifty Spot McClellan Oscillator – 12-08-2016
The McClellan Oscillator is a breadth indicator developed by Sherman and Marian McClellan, derived from Net Advances, the number of advancing issues less the number of declining issues. Subtracting the 39-day exponential moving average of Net Advances from the 19-day exponential moving average of Net Advances forms the oscillator. As the formula reveals, the McClellan Oscillator is a momentum indicator that works similar to other momentum indicators like MACD. As with MACD, McClellan Oscillator signals can also be generated with breadth thrusts, centerline crossovers, overall levels and divergences.
Nifty Spot McClellan Oscillator and McClellan Summation Index – 12-08-2016
Even though the McClellan Oscillator can be quite volatile, it can also remain positive or negative for extended periods during a strong uptrend or downtrend.
A breadth thrust occurs when the McClellan Oscillator surges from deep negative readings to strong positive readings. Typically, the indicator will move from below -50 and exceed +50 for a +100 point thrust. A breadth thrust signals a surge in bullish breadth that can lead to an extended advance. Not all breadth thrusts foreshadow extended advances, but most important lows are marked by a sharp surge in breadth. A breadth thrust is enhanced when preceded by a bullish divergence.
The McClellan Oscillator measures the momentum of the AD Line or Net Advances. As a momentum oscillator, it is prone to the pitfalls of normal momentum oscillators, such as MACD. Bearish and bullish divergences can produce some great signals, but these signals are certainly not fail-proof. The same is true for breadth thrusts and crosses into the negative or positive territory. Like MACD, the McClellan Oscillator is a rather volatile indicator that produces many potential signals. Signals should be confirmed with other technical indicators and/or other chart analysis.
Disclaimer :
Nifty Spot McClellan Oscillator chart is compiled on the basis of the Exchange-wide End of the Day Advance – Decline data provided by the National Stock Exchange. Utmost care is taken for data entries & updating of the charts and we are not liable for any errors or omissions caused due to software and/or human error. The usage of the charts is subject to Terms of Use, Risk Disclosure / Disclaimer and the Privacy Policy of Justfintech.com
