![]() Both the Over-bought/-Oversold indicator and the McClellan Oscillator are created using moving averages of advancing minus declining issues. The moving average creates an excellent short-term overbought/oversold indicator. I prefer to plot a 5-to-40 day exponential moving average of the Advancing-Declining Issues rather than the daily values themselves. Very weak days have readings of less than -1,000. Strong up days generally show readings of more than +1,000. Plotted by itself, this indicator is helpful to determine daily market strength. ![]() The Advancing-Declining Issues indicator shows the difference between the number of advancing issues and the number of declining issues. Indicators that use advancing and declining issues in their calculations are called market breadth indicators. These indicators include the Advance/Decline Line, Advance/Decline Ratio, Absolute Breadth Index, Breadth Thrust, McClellan Oscillator and Summation Index. The difference between the number of advancing and declining issues is the foundation of many market breadth indicators. ![]() ![]() As of this writing, about 2,500 issues trade each day on the NYSE. The Advancing-Declining Issues is a market momentum indicator which shows the difference between stocks listed on the New York Stock Exchange that advanced in price minus those that declined. ![]()
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