On-demand seminar recording of Sherman and Tom McClellan's 1994 seminar presentation at the Technical Analysis Conference (TAG) in Las Vegas, archived as part of the large INO TV stock market and trading educational library. Sherman and Tom focuses on the McClellan Oscillator (definition) and McClellan Summation Index (definition). While this seminar took place over 16 years ago, this presentation is just as relevant now as it was back then. Sherman McClellan and his wife Marian developed the McClellan Oscillator and Summation Index in 1969 by hand, and these indicators have been a widely used technical analysis and market timing tool to this day.
Presenters: Sherman McClellan and Tom McClellan
Length: 109 Minutes
PDF Slides: 30 pages
Format: MP3 Audio and PDF
Original Presentation Date: 1994
Sherman McClellan focuses on techniques for interpreting both indices for market timing. He shows techniques for overlaying similar Summation Index chart patterns. This technique helped him to properly forecast the explosive market rally that occurred in December, 1991. Overlays of Ocillator patterns forecast the May, 1970 bottom within one day in real time. As part of the education in this seminar, Sherman discusses how bull market tops and bear market bottoms develop, and how the Oscillator and Summation indices give advance warning as well as real-time confirmation of these events. You will also get insight into the meaning of extreme Summation Index readings. Research as far back as 1928 has shown that the Summation Index has exceeded +3000 only 7 times, all of them since 1971. It reaches deeply negative values, below -1300, as bear markets conclude. Sherman gave new insights to those traders experienced with the McClellan Oscillator and explains his new concepts to new technicians in a way that new students can understand.
Tom McClellan, Sherman and Marian's son, has developed new ways to use exponential trend indicators and oscillators for forecasting dates of future market turning points and will assist in this presentation. Tom introduces the audience to methods of calculating and understanding the McClellan Oscillator as well as several other similar indicators. While presenting a variety of indicators, Tom gave some unique historical insights and how he uses these to forecast the stock market. He also introduces his methods for using the price histories of certain markets, such as gold, to show what may happen for future price movements of other markets. Finally, Tim covers his development of constructing the Presidential Cycle Pattern, a highly successful tool that analyzes the seasonalities of the market over a 4-year presidential cycle rather than a 1-year cycle.
The McClellan Oscillator represents the daily difference between two exponential moving averages of the daily NYSE advance-decline difference. For more, see Definitions: McClellan Oscillator.
The McClellan Summation Index sums up all the McClellan Oscillator values, and is neutral at the +1000 level when property calculated and calibrated. For more, see Definitions: McClellan Summation Index.
Sherman McClellan graduated from college wiht a degree in business administrtion and economics. His dissatisfaction with a number of methods for technical analysis (as well as fundamental analysis) led him to develop new techniques for assessing market conditions. Sherman and his wife Marian developed the McClellan Oscillator and Summation Index in 1969. The derived the Oscillator from a number of advance declines each day on the New York Stock Exchange. Sherman brought these indicators to the public during guest appearances on Charting the Market, a technical analysis television program aired on KWHY in Los Angeles which heightened public interest in Sherman And Marian McCellan's new indicators. Peter Haurlan, publisher of Trade Levels, invited them to publish a book detailing their research, titled "Patterns for Profit." Sherman and Marian developed the McClellan Oscillator and Summation Index without access to a computer. The development of personal computers opened up new capabilities for using the trend analysis techniques which are part of the McClellan Oscillator.
Tom McClellan's research into market movements is almost entirely technical in nature, and has resulted in consistent top 10 rankings for intermediate stock market and gold timing according to Timer Digest. Tom is the editor of both The McClellan Market Report and its companion Daily Fax Edition. He is a graduate of West Point where he studied aerospace engineering, and served as an Army helicopter pilot for 11 years. He began his own study of market technical analysis while in the service. Tom is the son of Sherman and Marian McClellan, who in 1969 originally developed the McClellan Oscillator and Summation Index. These two indicators are now widely followed by market technicians.
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