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MetaStock
Indicator - McClellan
Summation Index
rev. 01/06/97
The McClellan
Summation Index is a market breadth indicator
developed by Sherman and Marian McClellan. It is a
long-term version of the McClellan Oscillator and
its interpretation is similar to that of the
McClellan Oscillator except that it is more suited
to major trend reversals.
For more extensive
coverage of the index refer to the book Patterns
for Profit, by Sherman and Marian
McClellan.
McClellan suggests
the following rules for use with the summation
Index:
- Look for major
bottoms when the Summation Index falls below
-1300.
- Look for major
tops to occur when a divergence with the
market occurs above a Summation Index level of
+1600.
- The beginning
of a significant bull market is indicated when
the Summation Index crosses above +1900 after
moving upward more than 3600 points from its
prior low (e.g. the index moves from -1600 to
+2000).
The summation
index is plotted by adding the Cum function to the
McCllellan
Oscillator. The formula is:
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Cum(Mov(C,19,E)
- Mov(C,39,E))
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