| McClellan
Oscillator |
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A
market breadth indicator that is based on the difference between the
number of advancing and declining issues on the NYSE. Primarily for
short and intermediate term trading.
To calculate subtract a 39 day EMA of advancing issues - declining
issues from a 19 day EMA of advancing issues - declining issues.
(19 Day EMA of Advances - Declines) - (39 Day EMA of Advances - Declines)
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Usually,
a small number of stocks making large gains characterizes a weakening
bull market. This gives the perception the overall market is healthy
but in reality is not as rising prices are being driven by a small
number of stocks. Conversely, when a bear market is still declining,
but a smaller amount of stocks are declining, an end to the bear market
may be near. |
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