McClellan Oscillator

The McClellan Oscillator, like all stock market oscillators, is a technical analysis tool that identifies trends using extreme high and low values. It's a market breadth oscillator, which means that, for any given index or stock exchange, it analyzes the rising and falling stocks.

A positive market breadth on the McClellan Oscillator means the glass is more than half full, with more stocks going up than down. A negative market breadth is the opposite, with more stocks taking a dive than climbing upward.

In particular, the McClellan Oscillator emphasizes positive and negative market breadths to show when the shifts are strong, which are called breadth thrusts (moving + or - 100 points). It’s also useful for trying to predict the beginning of trends. If an index is falling, but the McClellan Oscillator shows it rising, it means the index may soon make an upward turn.