McClellan Summation
 |
 |
 |
 |
 |
 |
The basis of McClellan Summation index, developed by Sherman and Marian McClellan and being the indicator of a market breadth, is the McClellan Oscillator.
The McClellan Summation treatment is close to the McClellan Oscillator's, though it's works better for general trend reversals and a prolonged period of time.
There is a list of rules to be followed while using the Summation suggested by The McClellans.
In case the McClellan Summation gets lower than -1,300 you should seek for major bottoms.
If the difference with the market turns up over +1,600 it's time to expect major tops.
When the McClellan Summation gets the values higher than +1,600 having raised more than 3,600 points higher than its previous low the considerable bull market is about to come.
The McClellans suggest the following rules for use with the Summation:
Look for major bottoms when the McClellan Summation drops under -1,300.
Look for major tops to occur when a divergence with the market occurs above a level of +1,600.
The beginning of a significant bull market is indicated when the McClellan Summation crosses above +1,900 after moving upward more than 3,600 points from its prior low.
Related articles: