McClellan Summation Index from Market-Wide Candle Breadth

Summary

The McClellan Summation Index is presented as a cumulative market-breadth indicator built from the McClellan Oscillator. Its underlying RANA measure compares the number of bullish candles with the number of bearish candles across symbols sharing a selected base currency, scaled by their combined count. Moving averages of that measure feed the oscillator, which is then added to the previous day's Summation Index value.

The indicator exposes a base currency and fast and slow moving-average periods; the stated default periods are 19. It calculates RANA internally, so a separate RANA indicator is unnecessary. The description also notes that initial use or a timeframe change can take time because historical data must be downloaded for all relevant symbols. It provides the calculation framework but no example interpretation, trading rules, or evidence of predictive performance, so the index should be treated as a breadth measure rather than a validated standalone signal.

Key ideas

• RANA measures the balance of bullish and bearish candles across symbols for a chosen base currency.
• The McClellan Oscillator uses the difference between moving averages of RANA.
• The Summation Index accumulates the oscillator by adding its value to the previous day's index.
• The indicator calculates RANA itself but needs historical data for the relevant symbols.
• The document gives no trading rules or evidence that the index predicts returns.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.