The McClellan Oscillator applies a 19-day and 39-day EMA to the daily advance-decline difference, creating a momentum oscillator for market breadth that identifies overbought/oversold conditions at the index level. It is a staple tool for stock market analysts tracking the health of major indices. Use the McClellan Oscillator alongside the A/D Line and TRIN for a complete breadth picture.
McClellan Oscillator = 19-day EMA of (Advances − Declines) − 39-day EMA of (Advances − Declines). Positive readings indicate breadth momentum is bullish; negative readings indicate bearish breadth momentum. Extreme positive readings (>100) or negative readings (<−100) signal potential turning points.
The TRIN (Trading Index), also known as the Arms Index, measures the relationship between advancing/declining stocks and their respective volume to gauge whether the market is under buying or selling pressure. It is a real-time <a href="/academy/indicators" class="text-primary hover:underline">market breadth</a> oscillator used extensively by <a href="/market/stocks" class="text-primary hover:underline">stock</a> market floor traders and institutional desks. Pair TRIN with the <a href="/academy/indicators/advance-decline-line" class="text-primary hover:underline">A/D Line</a> for a comprehensive breadth analysis framework.
The Advance/Decline Line tracks the cumulative difference between the number of advancing and declining stocks, providing a broad measure of market participation that reveals whether rallies or selloffs are broad-based or driven by a few names. It is the foundational <a href="/academy/indicators" class="text-primary hover:underline">market breadth</a> indicator for <a href="/market/stocks" class="text-primary hover:underline">stock</a> index analysis. Use A/D Line divergence from the index to spot potential tops and bottoms within your <a href="/strategies" class="text-primary hover:underline">trading strategies</a>.