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Hi Rex, thanks for the info.
I should have gotten back to the list sooner and mentioned that thanks
to some wonderful help by Bill Saxon and my newly received TASC CD-ROM
(highly recommended!), I was able to create a custom indicator that
computes the "normalized" version of the McClellan Summation Index.
The normalized version is what the McClellans use in their newsletter
and is what should be used when applying their interpretation rules
relative to the 1000 level.
FWIW, here is the formula I'm now using:
1000 - 9 * Mov(C,19,E) + 19 * Mov(C,39,E)
The number almost exactly matches the numbers published by the
McClellans. The slight differences are due to differences in the raw
Advance & Decline figures Reuter's supplies.
You can see the new results for both the NYSE and the NASDAQ on my
"Market Internals" page.
Thanks again,
Chip
http://coolhistory.com/ChipsCharts
---RexTak <RexTak@xxxxxxx> wrote:
>
> 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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