Why You Should Be Mindful Of The McClellan Oscillator
- Posted by Chart.ly
- on July 27th, 2010
One of the tools that swing traders use to manage risk is the McClellan Oscillator. It gives swing traders a good idea of just how overbought or oversold the market is. At most points in time this oscillator isn’t much use as the market isn’t often extremely overbought or oversold. But when this indicator does get run too far in either direction, it’s a good clue that it’s time to take off some exposure on the long side as it reads overbought, and on the short side as it reads oversold. We saw a very interesting reading on the McClellan yesterday and this chart was posted by @stevenplace.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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