Definitions
In plain terms
This transform compares the balance of rising and falling issues with the number that actually moved, making sessions with different mover counts more comparable.
Technical
The canonical input is r = 1000(A-D)/(A+D), measured as breadth points per 1,000 moving issues, with unchanged issues excluded and A+D=0 undefined.
Scope
This is the McClellan ratio adjustment, not the Advance/Decline Ratio A/D and not a universal normalization for every breadth indicator.
Formula
r = k * (A - D) / (A + D)r_t = k\frac{A_t-D_t}{A_t+D_t}| Symbol | Meaning | Unit |
|---|---|---|
r_t | Ratio-adjusted breadth for session t | breadth points |
k | Canonical breadth scale factor | breadth points |
A_t | Advancing issues for session t | issues |
D_t | Declining issues for session t | issues |
Output unit: breadth points per 1,000 moving issues
Examples
- With 600 advances and 400 declines, ratio-adjusted breadth is 200 points.
Common misconceptions
- Ratio-adjusted breadth is not calculated as advances divided by declines.
Concept relationships
Prerequisites
Broader concepts
Derived from
Where this concept is used
Evidence and governance
- Ratio Adjusted Summation Index McClellan Financial Publications · first party methodology
Supports: preferred label, short definition, technical definition, formula, units, variant distinction
Limits: Historical interpretive thresholds are not universal trading rules; the source does not prescribe the package's evidence or software failure policies.
- McClellan Oscillator StockCharts ChartSchool · secondary methodology
Supports: variant distinction
Limits: Platform symbols, displayed thresholds, universe choices, and implementation details are vendor-specific rather than universal methodology requirements.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-26
- Next review
- 2027-07-26
- Record status
- published