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The McClellan Oscillator, by Sherman and Marian McClellan, shows the difference between the advancing and declining issues on the NYSE, smoothed, and is therefore a 'breadth' indicator (a bull market is usually signified by many stocks making small gains, whereas a reversal may be indicated by a smaller number of stocks making large gains, and thereby propping up the index). The inverse, of course, applies to bear markets. Day trading experts probably have little use for this indicator, as it may not scale down well into an intra-day timeframe, even if the trader's software has access to the volume data underpinning it.

The McClellan Oscillator generates a buy signal when it falls into an oversold area of -70 to -100 followed by a turn back up. Sell signals occur if the oscillator rises into an overbought area of +70 to +100 and then subsequently turns down. Extreme overbought/sold conditions (outside -100 and +100) usually mean a continuation in the trend. To calculate the McClellan Oscillator take the difference between the 19-day and 39 day EMAs of advancing minus declining issues.

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