A Smoothed McClellan Oscillator with Adjustable Period Scaling

Summary

The McClellan Oscillator measures market breadth by taking the difference between faster and slower averages of advances minus declines. The document explains the original rationale: the faster average may turn ahead of the slower one near intermediate-term overbought or oversold conditions, potentially signaling a change in market direction before price fully reverses.

This variant replaces exponential averages with a smoother calculation and adds a period multiplier to adjust the indicator’s speed and readability. The author suggests that, at higher multiplier settings, zero-line crossings may serve as signals when viewed alongside the related underlying symbol. No performance data or systematic evaluation is provided. The proposed signals are presented as usage guidance, so their reliability across markets and timeframes is not established.

Key ideas

• The original oscillator is the difference between fast and slow averages of advances minus declines.
• This version substitutes a smoother calculation for exponential averages.
• A period multiplier adjusts the effective periods without changing each period separately.
• The author suggests testing zero-line crossings at higher multiplier settings alongside the related symbol.
• The document gives no quantitative evidence that these signals are profitable.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.