The Summation Index is simply a running total of the values. Even though it is called a Summation Index, the indicator is really an oscillator that fluctuates above/below zero. As such, signals can be derived from / divergences, and centerline crossovers. A moving average can also be applied to identify upturns and downturns.
Indicator uses the advancing/declining stocks from NYSE by default, but you can change them to any market in the options dialog.
Complete list of my indicators:
List of my indicators at Appstore: http://blog.tradingview.com/?p=970
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.
// // @author LazyBear // List of all my indicators: // https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing // study("McClellan Summation Index [LazyBear]", shorttitle="MSI_LB") advissues=input(defval="ADVN", title="Advancing Stocks Symbol", type=symbol) decissues=input(defval="DECN", title="Declining Stocks Symbol", type=symbol) isRA=input(true, title="Stockcharts version (Ratio Adjusted)?") rm=input(defval=1000, title="RANA ratio multiplier") useCTF=input(false, title="Use Custom Timeframe?"), tf=useCTF?input("D", type=resolution, title="Custom Timeframe"):period ai=security(advissues, tf, close), di=security(decissues, tf, close) rana=rm * (ai-di)/(ai+di) e1=isRA?ema(rana, 19):ema(ai-di, 19),e2=isRA?ema(rana, 39):ema(ai-di, 39) mo=e1-e2,msi=nz(msi)+mo hline(0, title="ZeroLine") plot(msi<0?msi:0, style=area, color=red, title="MSI_Negative") plot(msi>=0?msi:0, style=area, color=green, title="MSI_Positive") plot(msi, style=line, color=black, title="MSI", linewidth=2)