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McClellan summation index

A running cumulative total of the McClellan oscillator, used as a longer-term measure of breadth condition.

If the mcclellan-oscillator is the breadth equivalent of momentum, the summation index is the equivalent of position. It rises while breadth momentum is positive and falls when it is negative.

Analysts use it to characterise the market's underlying condition over weeks and months, and turns from deeply negative levels have historically coincided with the early stages of broad recoveries.

It is a slow, cumulative series and therefore useless for timing anything. It is also entirely dependent on the same advance-decline data as everything else in this family, so stacking it alongside the oscillator and the advance-decline-line gives three views of one dataset, not three confirmations.

Related: mcclellan-oscillator, advance-decline-line, market-breadth, indicator-lag, confluence

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

A stochastic oscillator under a price chartA price line above a lower panel with a fast and a slow curve swinging between a line at 80 and a line at 20, and the point where the fast curve turns up through the slow one circled.PRICESTOCHASTIC (14, 3)80overbought20oversold%K%D%K crosses above %D
The stochastic oscillator. The stochastic shows where each close sits inside the recent high-to-low range, on a scale of 0 to 100. Readings above 80 mean closes are hugging the top of that range and below 20 the bottom; the circle marks the fast line turning up through the slow one.

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