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Technical Indicators & Overlays


McClellan Summation Index

September 20, 2014

In the last installment of Technically Speaking, we introduced the McClellan Oscillator. This breadth indicator is derived from net advances, which is the number of advancing issues of an exchange or index less the number of declining issues. The McClellan Oscillator is the difference between the 19-day exponential moving average of net advances and the 39-day exponential moving average. Traders use the indicator as both as a momentum indicator and a measure of breadth.

This month, we look at another indicator that is based on the McClellan Oscillator, the McClellan Summation Index. Developed by Sherman and Marian McClellan, the McClellan Summation Index is also a breadth indicator based on net advances (advancing issues less declining issues). This time, however, we are looking at a running total of the McClellan Oscillator values. The oscillator fluctuates above and below zero. Traders can use the indicator to identify bullish and bearish divergences, directional movement, and centerline (zero) crossovers.


The McClellan Summation Index is calculated as follows:

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