With out explanation as http://lalitlk-lalit-lk.blogspot.in/2016/09/analysis-of-nifty-with-step-sum.html amply cover, let me put up a Nifty Step Sum
chart for 5 years 8 months ending on 30th August 2019 :
Quoting from earlier blog
"Step Sum is in the form of a new technical tool to evaluate the psychology of the market. It has been developed by Mark Lundeen and it offers a unique insight into the psychology of the market.The step sum is a single item Advance – Decline Line. In other words; if Nifty is down from the previous day’s close, we give it a value of (-1), if they end the day up from the previous day’s close, we give it a value of (+1). So a step sum plot is merely the net sum of up and down market days over time."
Quoting from earlier blog
"Step Sum is in the form of a new technical tool to evaluate the psychology of the market. It has been developed by Mark Lundeen and it offers a unique insight into the psychology of the market.The step sum is a single item Advance – Decline Line. In other words; if Nifty is down from the previous day’s close, we give it a value of (-1), if they end the day up from the previous day’s close, we give it a value of (+1). So a step sum plot is merely the net sum of up and down market days over time."
Notice that starting 3rd November 1995, Nifty Index had a closing of 1000. For considerable time, we find the Step sum being in Negative & had first positive value of 3 in month ended 29th February 2000 ; when Nifty had 540 number of "Up" (with aggregate of 7795.31 in rise) over 537 number of "Down" (with aggregate of 7140.51 in fall) , resulting in a close at 1654.80.
Nifty had been moving like an irregular Pendulum as shown diagrammatically below :
2779 "Down" net of 2779 "UP" moves caused a fall of 2779* (38.22 - 36.97), i.e., minus 3471.06 ; however, overall (3144 - 2779) , i.e., 365 "UP" moves gave a rise of 365 * 36.97, i.e., 13494.31 leading to over all rise over initial 1000 of (10023.25 + 1000) = 11023.25 as on 30th August 2019.
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