2 McClellan Oscillator index

http://dtpt.blogspot.com/2009/11/stock-finder-extreme-days-correlated-to.html

http://www.swing-trade-stocks.com/mcclellan-oscillator.html
The McClellan Oscillator calculated by subtracting the difference between 39 day exponential moving average and the 19 day exponential moving average of advancing minus declining stocks (smoothing of the Advance/Decline line). It is plotted against the movements of a particular exchange, usually the NYSE, but it is also available for the Nasdaq.

Swing Traders can use the McClellan Oscillator to identify overbought/oversold levels. Buy signals are generated when the indicator gets into the -50 to -100 range and then turns up. Sell signals are generated when the indicator gets into the +50 to +100 range and then turns down. If the oscillator gets into the -100 or +100 range, then this would be considered an extreme condition and reversals can be anticipated.

Momentum traders can use the McClellan Oscillator to participate in market rallies and market declines. A buy signal is given when the oscillator crosses above 0. A sell signal is given when the oscillator crosses below 0.

McClellan Summation Index

Now what would happen if you added up all of the values of the McClellan Oscillator? You would come up with what is known as the Summation Index. This is a longer term view of the market that stock traders and investors use to identify the beginning and ends of bull markets - the major trends in the market.