The is a indicator which was developed by Sherman and Marian McClellan. It is based on the and add its values together, effectively running a total. The index goes up when the is positive and goes down when it is negative. Signals can be derived from the index crossing the middle line ( when it's crossing up and when it's crossing down). Other potential signals include divergences and overbought and oversold conditions. The indicator is best used in combination with other analysis techniques.
About this implementation
This version here is a modification of the .
It runs the simple version of the and uses the simple method to calculate the Summation Index. No ratios are used in this implementation.
- It can only be used on the DAX index ( DAX 30 or 30)
- It only considers the DAX 30 stocks
- The data window will provide a summary about rising and declining stocks
- The data window will output the last change for each of the 30 stocks
- The script is pretty slow because it has to calculate the change for each bar individually (instead of receiving a complete calculation from the stock exchange).
This script was mainly written for educational purposes (training myself how to write custom indicatotors).
As you can see, the code is really messy.
FOR YOUR INFORMATION: This script will work on any time period. It is recommended to use it with timeperiod = 1d, though. Just use whatever timeperiod you are comfortable with, the indicator will automatically adjust accordingly.
Based on the simple version of aftabmk and of code from lazybear.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.