Definitions
In plain terms
This trend reacts more slowly because each update takes one twentieth of the newest breadth value and retains nineteen twentieths of its prior state.
Technical
Given input X_t and a previously initialized state, the recurrence is T5_t = 0.05 X_t + 0.95 T5_(t-1); a McClellan-family oscillator subtracts this state from the 10% Trend.
Scope
The 10 and 5 percent constants are methodology facts; initialization, rounding, revision resolution, and missing-session behavior remain separate implementation policies.
Formula
T5_t = 0.05*X_t + 0.95*T5_(t-1)T^{5}_t=0.05X_t+0.95T^{5}_{t-1}| Symbol | Meaning | Unit |
|---|---|---|
X_t | Current declared breadth input | input unit |
T5_t | Current 5 percent trend state | input unit |
T5_(t-1) | Previous 5 percent trend state | input unit |
Output unit: same as input
Examples
- If the prior state is 20 and the new input is 50, the updated 5% Trend is 21.5.
Common misconceptions
- The 5% Trend is not a five-session simple moving average.
Concept relationships
Where this concept is used
- ImportantTraditional McClellan Oscillator: Compare Fast and Slow Raw BreadthD04-F02-A01
- ImportantRatio-Adjusted McClellan OscillatorD04-F02-A02
- ImportantTraditional McClellan Summation IndexD04-F02-A03
- ImportantRatio-Adjusted Summation Index (RASI)D04-F02-A04
- ImportantMcClellan Volume OscillatorD04-F02-A05
- ImportantMcClellan Volume Summation IndexD04-F02-A06
- MentionedExponential Moving Average (EMA)D07-F01-A02
Evidence and governance
- Calculating the McClellan Oscillator McClellan Financial Publications · first party methodology
Supports: preferred label, technical definition, formula, units
Limits: Does not prescribe one universal initialization, missing-session, revision-resolution, rounding, or software interface policy.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-26
- Next review
- 2027-07-26
- Record status
- published