McClellan Oscillator


Function Name: mcc

Tags: Oscillator

Category: Market Breadth

The McClellan Oscillator indicator calculates the difference between Advancing Issues and Declining Issues, then calculates two exponential averages of this difference. The difference between the two averages is then calculated and plotted on the chart. The difference between advancing issues and declining issues is known as market breadth. For example, if a stock market index is rallying but there are more issues declining than advancing, then the rally is narrow and much of the stock market is not participating.

The McClellan Oscillator is used in trending markets to identify tops and bottoms based on the difference between the number of advancing and declining issues. This indicator is also used to identify divergences which assist in determining overbought/oversold markets. A bottom is said to occur when the McClellan Oscillator crosses from below zero to above zero indicating a bullish signal. A top is said to occur when the McClellan Oscillator crosses from above zero to below zero indicating a bearish signal.

Data components required:

- Advances - Declines

What Does Market Breadth Mean? A technique used in technical analysis that attempts to gauge the direction of the overall market by analyzing the number of companies advancing relative to the number declining. Positive market breadth occurs when more companies are moving higher than are moving lower, and it is used to suggest that the bulls are in control of the momentum. Conversely, a disproportional number of declining securities is used to confirm bearish momentum.

The market, in which a security is traded, has to be selected from the parameter drop-down menu (single klick on the index name, then the drop-down appears); e.g. if the Coppock Breadth of "Adidas" should be calculated, one has to select "DAX".


Author:   Sherman and Marian McClellan











Default Value: 19  |  Minimum: 2  |  Maximum: 9999


Type: Numeric



Default Value: 39  |  Minimum: 2  |  Maximum: 9999


Type: Numeric