McClellan Summation Index

The McClellan Summation Index is a market breath indicator based on the McClellan Oscillator.

The McClellan Summation Index was developed by Sherman and Marian McClellan. Extensive coverage of the index is provided in their book Patterns for Profit.

The McClellan Summation Index is a long-term version of the McClellan Oscillator. Its interpretation is similar to that of the McClellan Oscillator except that it is more suited to major trend reversals.

As explained in the Calculation section, there are two methods to calculate the Summation Index. The two calculation methods create indicators with identical appearances, but their numeric values differ. These interpretational comments refer to the "suggested" calculation method explained in the Calculation section.

McClellan suggests the following rules for use with the Summation Index:

  • Look for major bottoms when the Summation Index falls below -1,300.
  • Look for major tops to occur when a divergence (page 29) with the market occurs above a Summation Index level of +1,600.
  • The beginning of a significant bull market is indicated when the Summation Index crosses above +1,900 after moving upward more than 3,600 points from its prior low (e.g., the index moves from -1,600 to +2,000).

Syntax:

Public Function McClellanSumIndex(ByVal MCSIIn() As Double) As Double

Parameters:

  • ByVal MCSIIn() As Double

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Example:

 

    Dim TA4Net As New TA4Net.CTAFunctions("YOUR-REGISTRATION-CODE")

    Dim Result() As Double

    Dim CloseValues() As Double

 

    ' loading values to array

    CloseValues = GetCloseValues()

    ' calculating Technical Analysis function

    Result = TA4Net.McClellanSumIndex(CloseValues)

 

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