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Categories:Market Breadth Analysis
McClellan Oscillator is a breadth indicator derived from Net Advances, which is the number of advancing issues less the number of declining issues. Subtracting the 39-day exponential moving average of Net Advances from the 19-day exponential moving average of Net Advances forms the oscillator.
McClellan Oscillator is a market breadth indicator that is based on the difference between the number of advancing and declining issues on a stock exchange, such as the New York Stock Exchange (NYSE) or NASDAQ.
When price action goes through a red line on the bottom, one-half of the portfolio is hedged. When price action goes through a Red line on the top of the price action, I take one-half of the hedges off. When both red and green lines are pierced to the downside the TREND IS DOWN. When both of the red and green lines are pierced to the upside, the TREND IS UP. Note: I never move the stops away from the market, only in the direction of the trend, so when the bands turn against the trade, stops are held in place until executed or they start again moving in the trade%27s direction.
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