The McClellan Volume Oscillator works like the classic McClellan Oscillator but uses the volume of advancing and declining stocks instead of their number. Above zero, more volume flows into rising stocks and breadth momentum is bullish; below zero, volume favors falling stocks. Extreme readings show that buying or selling pressure has become one-sided, which often happens near short-term turning points. When it gives the same signal as the regular McClellan Oscillator, the move is backed both by the number of stocks and by the money behind them.
The charts above show the McClellan Volume Oscillator under the price of 24 stock indexes, from the S&P 500, Nasdaq 100 and Russell 2000 to the FTSE 100, DAX and Nifty 50, so you can compare breadth across markets at a glance. Click a chart to open a larger version.
The McClellan Volume Oscillator is a breadth indicator that measures the momentum of advancing volume versus declining volume in an index. It is the volume-based version of the McClellan Oscillator.
It is the difference between the 19-day and the 39-day exponential moving averages of net advancing volume, the volume of advancing stocks minus the volume of declining stocks.
A cross above zero shows that volume momentum has turned bullish, and a cross below zero that it has turned bearish. Extreme readings and divergences from the price index can warn of short-term reversals.
Counting stocks gives a small company the same weight as a large one. Volume shows where the trading activity is, so the volume version can reveal buying or selling pressure that the count misses.
Yes. In the Formula Screener, mvo is the McClellan Volume Oscillator. For example, (mvo > 0)@sp500 and rsi(14) ca 30 finds stocks whose RSI crossed above 30 while S&P 500 volume momentum is positive.
