McClellan Oscillator

Discussion in 'Technical Analysis' started by gordo, Mar 23, 2006.

  1. gordo


    was on the stockcharts site, and looked at the McClellan Oscillator. Does anyone else see a divergence b/t that and the NYSE? It has been a couple of years since I used it, is there any significance?

  2. I have been following the McClellan Osc for almost 4 years now....

    IMO it no longer is useful to me in my trading...

    It used to be great. I would look for divergences, also if the osc was in negative territory -short rallies, and if the osc was in positive territory I would buy dips.

    Also the McClellan osc minor change theory always always always worked.... as time went on it became less and less reliable as an indicator to me.

    I would always be on the look out for a negative or positive minor change such as we had today and it would be great at predicting a trend day. Now , imo it doesn't work nearly as much as it used to for my liking.

    Based on today's readings we should have a trend day tomorrow and its a 75% change the trend direction is up.
    (positive minor change)
  3. "Profiting from the Setup

    I use it in a few different ways...
    when overbought (when the osc. is at the top of the chart) I look for tops.
    when oversold ( at lower end of the chart) i look for bottoms.
    I find that the daily signals u early. and will turn before indexes do as i have mentioned.
    Another good way to use this oscillator is watch it for crosses of the 0 line
    You will get a good pop in the indexes in the same direction of the cross. if u miss it in pre, you can still catch it on pullbacks or bounces . You can do this because u can trust the direction of the crossover. This will be one of those boring days that keeps going in one direction


    The last way i will discuss today is The Minor Change
    The rule is like this... if the oscillator has a change of 4 or less u have a minor change.
    75 % of the time the indexes will move in the same direction of the change. You will
    get an over 1% close in the next 2 days following the minor change.
    We refer to this as THE McCLOSE .. or a McClellan day..
    1 exception.. if u get another minor change the following day.. this pushes it back another 2 days..

    McClellan days tend to stay in 1 direction .. with little corrections .. boring .. unless u have the direction right... then its relaxing .. so it may be boring .. but thats better than becoming the fuel (during the corrections) u will see in the long run its better to sit on ur hands if u dont want to trade mcclellan direction
    On up Mcclellan days u dont want to short.
    On down Mcclellan days u dont want to go long
    This has saved me tons of money. "
  4. Hello:

    Most folks are not aware that the McClellan Oscillator was actually invented during the civil war by General George C. McClellan.

    The General was an eccentric person who liked to rise early and listen to hiphop music on his Ipod. After a hearty breakfast of scrambled eggs and fried pig testicles, he would dress in his finest silk robe and cowboy boots, and play several choruses of "Battle Hymnn of the Republic" on his antique bugle. He liked to cap off his morning by firing his revolver into the air, all the while yelling "bring it on you nazi bastards".

    He used his invention to trade steer manure futures on what was then a thriving domestic manure (pig, hog, steer and chicken) market.

    Just a bit of historical trivia.

  5. Coolio.........

    Gotta love the history lessons!
  6. IPOD ???

  7. Loosen up, its called "artistic license"

  8. gordo


    Right on Steve! Wouldn't doubt that there are some that would believe your history lesson :p

  9. Yes Gordo:

    You are correct. In point of fact, General McClellan is better known as the inventor of the Frisbee. After firing several rounds from his revolver, he would climb into the back of his jeep Cherokee stark naked (still wearing his cowboy boots however) and have his driver circle the encampment, while he threw Frisbees to his soldiers.

    I am glad we have cleared that up. We all know how important historical accuracy is.

    As you were men!


  10. I thought the same thing. I had always been taught it was a MP3...
    #10     Mar 26, 2006