McClellan Summation Index
The McClellan Summation Index is a technical indicator used to measure the strength of a market trend. It is calculated by taking the difference between the number of advancing and declining stocks and then adding the result to a running total. This running total is then plotted on a chart to show the overall trend of the market. The McClellan Summation Index is often used to identify overbought and oversold conditions in the market.
History of the McClellan Summation Index
The McClellan Summation Index was developed by Sherman and Marian McClellan in the late 1970s. The McClellans were pioneers in the field of technical analysis and developed the index to measure the strength of a market trend. The index is based on the McClellan Oscillator, which is a momentum indicator that measures the difference between the number of advancing and declining stocks. The McClellan Summation Index takes this difference and adds it to a running total, which is then plotted on a chart.
Comparison Table
| Indicator | McClellan Summation Index | McClellan Oscillator |
|---|---|---|
| Calculation | Difference between advancing and declining stocks added to a running total | Difference between advancing and declining stocks |
| Purpose | Measures the strength of a market trend | Measures momentum |
Summary
The McClellan Summation Index is a technical indicator used to measure the strength of a market trend. It is calculated by taking the difference between the number of advancing and declining stocks and then adding the result to a running total. This running total is then plotted on a chart to show the overall trend of the market. The McClellan Summation Index is often used to identify overbought and oversold conditions in the market. For more information about the McClellan Summation Index, visit Investopedia, StockCharts, and TradingView.
See Also
- McClellan Oscillator
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- Stochastic Oscillator
- Bollinger Bands
- On Balance Volume (OBV)
- Average Directional Index (ADX)
- Commodity Channel Index (CCI)
- Price Volume Trend (PVT)
- Chaikin Money Flow (CMF)
