Registered User
Joined: 10/7/2004
Posts: 16
|
Could you tell me the formula for the Summation Index, and how to set this indicator in a chart?
I would appreciate it.
Lolita
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
In TeleChart (and StockFinder), the McClellan Oscillator and Summation Index are available as symbols (just like a stock symbol or index symbol) that can be charted:
Worden’s Market Indicators (T2s)
T2106 McClellan Oscillator
The McClellan Oscillator is reported each day by many financial news services. Their reported value will almost always be different than our value because, as mentioned earlier, we use every stock on the NYSE. The overall trend of the indicator, however, will be the same.
The McClellan Oscillator is calculated by subtracting a 39 day moving average of (Advances – Declines) from a 19 day moving average of (Advances – Declines). It not only works as an overbought/oversold indicator, it works fairly well at making short-term trend changes when it crosses the zero line.
Here again it is very important that you set your chart scaling to Arithmetic because the McClellan Oscillator will be negative on some market days and negative values cannot be displayed on a Logarithmic scale.
Note: Scaling must be set to Arithmetic for the chart to be displayed properly.
T2118 McClellan Summation Index
The McClellan Summation Index is simply a cumulative indicator of the McClellan Oscillator. It also can be interpreted as bullish or bearish when it crosses over the zero line. We find crossovers on a 10- or 20-day moving average of this indicator to make for a great trend following system. It tends to get you into trends early and keep you in…very few whipsaws.
Note: Scaling must be set to Arithmetic for the chart to be displayed properly.
In StockFinder, the McClellan Oscillator and Summation Index is also available as an Indicator that can be calculated and plotted for any Watchlist.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|