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The McClellan Oscillator is meaningless when applied to an individual stock.
It only has meaning when applied to the NYSE index and then should only be
used as a confirming indicator in association with other indicators and
analysis techniques.
John Manasco
----- Original Message -----
From: <jgilca@xxxxxxx>
To: <metastock@xxxxxxxxxxxxxxxxxx>
Sent: Thursday, September 30, 1999 4:03 PM
Subject: Re: McClellan oscillator
> Dear co-listers:
>
> I have just discovered the McClellan Oscillator. It is a standard
> indicator listed in Metastock 6.5, that gives interesting graphics
> showing the divergencies betwen the chart and the oscillator.
>
> But we can read in the Equis site:
> "The McClellan Oscillator, developed by Sherman and Marian McClellan,
> is a market breadth indicator that is based on the smoothed
> difference between the number of advancing and declining issues on
> the New York Stock Exchange. The McClellan Oscillator is one of the
> most popular breadth indicators. Buy signals are typically generated
> when the McClellan Oscillator falls into the oversold area of -70 to
> -100 and turns up. Sell signals are generated when the oscillator
> rises into the overbought area of +70 to +100 and then turns down."
>
> Therefore, if I display that indicator on the Microsoft's chart,
> what does the oscillator's graphic developped in the chart mean? From
> the above explanation, the graphic is not derived from the chart, but
> from the data of advancing and declining issues. Could it be a
> diferent indicator?
>
> Thanks and good trading
>
> Jgilca
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