Description

• As the name signifies, this oscillator was introduced by McClellan
• This oscillator utilizes two EMA’s and computes the difference between the 1st EMA of advance minus decline and the 2nd EMA of advance minus decline

Interpretation

• When the Oscillator is positive, it generally portrays money coming into the market
• When it is negative, it reflects money leaving the market
• When the Oscillator reaches extreme readings, it can reflect an overbought or oversold condition

Default Parameters Used/Inputs

• Fast Bars
• Slow Bars

Returns/Output

McClellan oscillator values of the stock for the specified period

Formula

M[X]=Diff(EMA((Diff(Adv[X],Dec[X])),Rf),EMA((Diff(Adv[X],Dec[X])),Rs))
where M[X] indicates McClellan Rf and Rs are the fast and slow period EMA ranges