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The
McClellan Volume Oscillator is calculated similarly to the
McClellan Oscillator (see
chart 1) except that advancing/declining volume is used
instead of advancing/declining issues.
A healthy bull market is accompanied by
a large number of stocks making moderate upward advances in price. A
weakening bull market is characterized by a small number of stocks
making large advances in price, giving the false appearance that all
is well. This type of divergence often signals an end to the bull
market. A similar interpretation applies to market bottoms, where
the market index continues to decline while fewer stocks are
declining.
The McClellan Volume Summation Index
is a market breath indicator based on an accumulation of the
McClellan Volume Oscillator (see above). The McClellan Volume
Summation Index is a long-term version of the McClellan Volume
Oscillator. Its interpretation is similar to that of the McClellan
Volume Oscillator except that it is more suited to major trend
reversals.
Different than price files available
elsewhere, MasterDATA's price files include total combined volume
of all component issues (not the trade volume for the index or
ETF itself). Typical volume oscillator lines can be plotted on
a chart showing total component volume of the index or ETF.
Additionally, Equivolume and candlevolume charts are possible
reflecting total component volume, often a much better reflection of
what is "really" going on in the index or ETF. Additionally, Custom
Indicators developed for individual securities that require a volume
value may be used with these files.
MetaStock can only display bar and candlestick charts utilizing
price files in a specified format. The price files included with the
MasterDATA Composite Plug-in allow such display utilizung total
component volume rather than trading volume of the instrument itself
(if any). |
