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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:
Cum(Mov(C,19,E) - Mov(C,39,E))
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Rank: Newbie
Groups: You have been a member since:: 9/8/2014(UTC) Posts: 4
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Hi, Is there anyway to find the value of this index, as when I have tried to use this formula directly in exploration to get a value and tried it plotting it afterwards, the two have always been very different. For ex: I want to look for stock where this index has crossed 1100 and I run an exloration for it, but when I physically plot this index on the stock chart, the value differs. Is there anyway to resolve this issue?
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 7/25/2005(UTC) Posts: 1,042
Was thanked: 57 time(s) in 54 post(s)
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Hi Tbhardwaj
As you can see from Patrick's post the formula for McClellan Summation Index is Cum(Mov(C,19,E)-Mov(C,39,E)). The Cum() function is the "Summation" element, and unless the Explorer loads the same number of bars as the charts you're comparing scan results with, you just won't get the same result. So, if you load 500 bars of data per chart then you should also load 500 bars for your MCI exploration if you expect matching results.
Roy
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Rank: Newbie
Groups: You have been a member since:: 9/8/2014(UTC) Posts: 4
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Hello Roy, So the formula that I am trying to work out is something like Cross(cum(Mov(c,19,e)-Mov(c,39,e)),1500)
Is there anyway possible to make this formula work in the explorer, so that it shows the same result both in exploration and on physical plotting.
Thanks
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Rank: Newbie
Groups: You have been a member since:: 9/8/2014(UTC) Posts: 4
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Or, if there is any other way to resolve this issue?
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Rank: Newbie
Groups: You have been a member since:: 9/8/2014(UTC) Posts: 4
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All, I want to find out, how to know when a particular index crosses a particular mark. Till now I was using the function Cross(), but it doesn't seem to work in this case. Please Help!
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