The McClellan Summation Index is a handy oscillator that builds upon the McClellan Oscillator, which itself derives from the values of McClellan's RANA indicator. This tool provides insights into the McClellan Oscillator while factoring in the previous day's values, making it a useful companion in your trading toolkit.
When using the McClellan Summation Index, you'll encounter three key input parameters:
- Base Currency - This is the base currency for the symbols shown in your Market Watch, crucial for calculating the RANA.
- Fast MA Period - The fast moving average period, set to 19 by default.
- Slow MA Period - The slow moving average period, also set to 19 by default.
Here's a quick look at the calculations:
McClellan Summation Index = McClellan Oscillator + McClellan Summation Index of the previous day
Where:
McClellan Oscillator = (MA(RANA(19)) - MA(RANA(39))) * (Fast MA period + Slow MA period)
- MA(RANA(19)) - The 19-day moving average based on RANA;
- MA(RANA(39)) - The 39-day moving average based on RANA.
RANA = (Up - Dn)/(Up + Dn)
- Up - The total number of bullish candlesticks across all symbols;
- Dn - The total number of bearish candlesticks across all symbols.
Keep in mind that during the first launch or when you switch timeframes, the indicator may take some time to download the necessary historical data for all required symbols.
Good news: You won’t need the RANA indicator separately, as the McClellan Summation Index calculates it on its own.
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