Can please explain why the answer is (1)? How to read the chart?
Course Name: Technical Indicators Strategies in Python, Section No: 27, Unit No: 7, Unit type: Quiz
Hi,
Thank you for your query. The question is not specific to a certain date and hence we are taking it down and will revisit it to be more specific.
However, if you want to know about the McClellan Indicator, you can think of the following steps.
First you are checking the number of stocks which have advanced (rose in comparison to previous time period) and declined (declined in comparison to previous time period). Then you calculate (Advance - Decline) A negative value indicates more number of stocks have declined in comparison to advancing.
Further, the (Advance - Decline) is divided by the total number of stocks and then the moving average is calculated.
Hope this helps.
Thanks for the reply.