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In a message dated 98-02-15 20:52:16 EST, you write:
<< Can someone who calculates the McClellan Summation Index on a regular
basis please compare their results with the chart on the "Market
Internals" page of my site (http://coolhistory.com/ChipsCharts)? >>
Hi, Chip!
I was thinking that one of the McClellan disciples would answer your
question more thoroughly than I might, but since I haven't seen anything so
far, I thought I'd give it a shot. I view the McClellan Summation Index in
the Technician (another Equis product). The Technician has two versions of
the Summation Index; the original version and the "B" version. The "B"
version was added after the McClellan disciples complained that the Y scale
was not correct. Both charts are otherwise identical as far as the shape of
the curve, and the "B" version matches the chart on your web site pretty
closely, although your chart looks a little smoothed compared to what I see in
the Technician, but that's a very minor difference.
My understanding is that the difference in the Y scale numbers depends on
what date the calculations begin, and I don't know what that date is, and I'm
not absolutely sure about this. The reason this is apparently important to
McClellan disciples is that interpretation depends somewhat on key levels, as
you indicated in your message. There have got to be others on this list
server who know more about this than I do. I believe that Kennedy Gammage
(The Richland Report) bases much of his analysis on this type of
interpretation.
In any case, I personally don't pay any attention to the Y axis numbers and
just look at the shape and direction of the curve. If you apply some
smoothing to the Summation Index and apply a trigger, you'll get signals that
are very similar to the MIRAT signals, in my opinion. As Frank points out,
the MIRAT signals are very useful for intermediate market calls, and I feel
the Summation Index does much the same job.
By the way, your web site is really looking great! And, I'm able to print
out the charts with IE 4.0 without having to access the printable chart pages.
Best Regards,
Rex S. Takasugi, President
Technical Disciplines
Investment Advisory & Management Services
(253)639-0436 Tel & 7806 Fax / RexTak@xxxxxxx
http://www.infowire.net/td/index.html
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