McClellan Oscillator

The McClellan Oscillator is a technical indicator for determining the behavior of an overall market, rather than the behavior of a single asset.The Oscillator was developed by Sherman and Marian McClellan. It is essentially a look at the momentum of the underlying breadth of the market.When it is above zero, momentum is positive; below zero, it is negative.

The McClellan Oscillator is taken by first subtracting the advancing assets from the declining assets for the entire market to determine the net advances and declines for the market.

If the Oscillator moves from -100 or below into positive numbers, a buy signal is generated.If the Oscillator moves from 100 or above into negative numbers, a sell signal is generated.