Overview
The McClellan Summation Index, developed by Sherman and Marian McClellan, is a long-term version of their McClellan Oscillator that is better suited to help identify potential major trend reversals.
The McClellan Oscillator is a market breadth indicator that is based on the smoothed difference between the numbers of advancing/declining statistics. In depth coverage of the McClellan Oscillator is provided in their book “Patterns for Profit”.
The MSI on a daily chart of USD/HKD 4/18/2011
Source: VT Trader
Interpretation
The Summation Index is interpreted in much the same as the McClellan Oscillator is. Please refer to the McClellan Oscillator’s Notes for additional details.
