 | This article needs additional citations for verification .(September 2013) |
The McClellan oscillator is a market breadth indicator used in technical analysis by financial analysts of the New York Stock Exchange to evaluate the balance between the advancing and declining stocks. [1] The McClellan oscillator is based on the Advance-Decline Data and it could be applied to stock market exchanges, indexes, portfolio of stocks or any basket of stocks.
The simplified formula for determining the oscillator is:
where advances is the number of the NYSE listed stocks which are traded above their previous day close and "declines" is the number of the NYSE listed stocks traded below their previous day close.
Therefore, crossovers of McClellan Oscillator and zero center line around which it oscillates would have the following meaning:
The McClellan Summation Index (MSI) is calculated by adding each day's McClellan oscillator to the previous day's summation index.
MSI properties:
The Summation index is oversold at −1000 to −1250 or overbought at 1000 to 1250. [3]
A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as secular for long time-frames, primary for medium time-frames, and secondary for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time.
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. As a type of active management, it stands in contradiction to much of modern portfolio theory. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results. It is distinguished from fundamental analysis, which considers a company's financial statements, health, and the overall state of the market and economy.
The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The indicator should not be confused with relative strength.
MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of securities prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price.
In finance, volume-weighted average price (VWAP) is the ratio of the value of a security or financial asset traded to the total volume of transactions during a trading session. It is a measure of the average trading price for the period.
Trix is a technical analysis oscillator developed in the 1980s by Jack Hutson, editor of Technical Analysis of Stocks and Commodities magazine. It shows the slope of a triple-smoothed exponential moving average. The name Trix is from "triple exponential."
The commodity channel index (CCI) is an oscillator originally introduced by Donald Lambert in 1980.
The detrended price oscillator (DPO) is an indicator in technical analysis that attempts to eliminate the long-term trends in prices by using a displaced moving average so it does not react to the most current price action. This allows the indicator to show intermediate overbought and oversold levels effectively.
The Negative Volume Index and Positive Volume Index indicators are indicators to identify primary market trends and reversals.
The Hindenburg Omen was a proposed technical analysis pattern, named after the Hindenburg disaster of May 6, 1937. It was created by Jim Miekka, who believed that it predicted stock market crashes.
The ultimate oscillator is a theoretical concept in finance developed by Larry Williams as a way to account for the problems experienced in most oscillators when used over different lengths of time.
Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply known as Puts, which give the buyer the right to sell a particular stock at the option's strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straightforward strategy might simply be the buying or selling of a single option; however, option strategies often refer to a combination of simultaneous buying and or selling of options.
The backspread is the converse strategy to the ratio spread and is also known as reverse ratio spread. Using calls, a bullish strategy known as the call backspread can be constructed and with puts, a strategy known as the put backspread can be constructed.
In finance, a credit spread, or net credit spread is an options strategy that involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. It is designed to make a profit when the spreads between the two options narrows.
The TRIN, or Arms index, developed by Richard Arms in the 1970s, is a short-term technical analysis stock market trading indicator based on the Advance-Decline Data. The name is short for TRading INdex. The index is calculated as follows:
The advance–decline line is a stock market technical indicator used by investors to measure the number of individual stocks participating in a market rise or fall. As price changes of large stocks can have a disproportionate effect on capitalization weighted stock market indices such as the S&P 500, the NYSE Composite Index, and the NASDAQ Composite index, it can be useful to know how broadly this movement extends into the larger universe of smaller stocks. Since market indexes represent a group of stocks, they do not present the whole picture of the trading day and the performance of the market during this day. Though the market indices give an idea about what has happened during the trading day, advance/decline numbers give an idea about the individual performance of particular stocks.
Breadth of market is an indicator used in security analysis. In its simplest form it is computed on a stock market by taking the ratio of the number of advancing stocks to declining stocks.
Chaikin Analytics is a platform for stock trading ideas. It was founded in 2011 by Marc Chaikin. The centerpiece of Chaikin Analytics is the Chaikin Power Gauge stock rating. In 2016, it was named one of "Two Top Websites for Quantitative Analysis" by Barron's (newspaper).
The Advance-Decline data also known as AD data are calculated to show the number of advancing and declining stocks and traded volume associated with these stocks within a market index, stock market exchange or any basket of stocks with purpose of analysis of the sentiment within the analysed group of stocks. Advance-Decline data are used to measure overall market breadth as well as to measure sentiment within the stock market sectors.
Volume Analysis is an example of a type of technical analysis that examines the volume of traded securities to confirm and predict price trends. Volume is a measure of the number of shares of an asset that are traded in a given period of time. As one of the oldest market indicators used for analysis, sudden changes in volume are often the result of news-related events. Commonly used by chartists and technical analysts, volume analysis is centered on the following ideas:
 | This finance-related article is a stub. You can help Wikipedia by expanding it. |
