Accumulative swing Index (ASI)

That is a total swing (ASI)’

The accumulative swing index (ASI) is a trend indicator used by traders to determine the long-term trend in the price of paper collectively, using the open, close, high and low prices.

Breaking down the ‘cumulative swing Index (ASI)’

ASI was developed by Welles Wilder, who also created the Index of the swing. In fact, ASI accumulation swing index. The details of the discussed index asi and swing can be found in the book of the Wilder, “new concepts in technical trading systems”.

The accumulative swing Index trend is one of several trend lines that can be followed to provide support for technical analysis, deciphering signals of buying and selling. Other popular indicators include weighted alpha, moving averages and volume weighted moving average.

Index total swing is displayed as a trend line. It can be deployed with the help of modern technical graphics programs such as metastock, worden TC2000, temporary coincidence, ninjatrader, Wave59 pro2, EquityFeed station, ProfitSource, VectorVest and MarketClub Ino. (For more on these platforms, see also: the best technical analysis trading software) is usually identified as a separate trend graphically similar to the Volume histogram. Both index accumulative swing index swing can be added for a technical analyst the chart.

Index Swing

The study of Wilder, he intended to determine the index, which can serve as a source of information on the value of the securities by the collective analysis of open safe, close, high and low prices. These prices are charted on a daily candlestick pattern is integrated into the following equation was developed by Wilder to arrive on the swing to measure the Index.

The index of a swing developed taking into account the differences between consecutive day closing price and the opening price given a variable R, as defined below:

This core value is multiplied times 50 and K/T, where T is the maximum number of price changes during the day.

The Accumulative Swing Index

The swing index value, and then accumulates in the form of accumulated swing index trend. This line value is usually in the range from 100 to -100. As the index based price, generally follow the patterns of the prices. The swing index asi and can be used in the analysis of all types of securities. It is often used for futures trading, but can be used for trend analysis of prices of other assets. Include a plan Inferences ASI to confirm breakouts. ASI can be used in conjunction with the trading channels in order to confirm breakouts as the trend line needs to be penetrated in both situations. Generally, when the ASI is positive, it confirms that the long-term trend will be higher, and when the ASI is negative, it suggests that the long-term trend will be lower.

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