McClellan Summation Index
The McClellan Summation Index AFL in Amibroker is a breadth indicator that evaluates the cumulative momentum of advancing and declining issues. Utilizing amibroker data feed capabilities, traders gauge market strength or weakness by analyzing the McClellan Summation Index’s movements. This AFL aids in understanding broader market trends and making informed decisions by assessing market breadth indicators over time.
/ // // 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. // //------------------------------------------------------------------------------ /* McClellan Summation Index */ Graph0 = Cum( Ema( AdvIssues()-DecIssues(), 19 ) - Ema( AdvIssues()-DecIssues(), 39 ) );