Accumulation Swing Index

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Category: Advanced Indicator Set 2

 

Input parameters

Name

Setting

Default

Open

Open time series

Open

High

High time series

High

Low

Low time series

Low

Close

Close time series

Close

LimitMove

Real number

3

 

Calculations

Accumulation Swing Index = CumSum(Swing Index)

 

Discussion

The Accumulation Swing Index (ASI) is just a cumulative sum of the Swing Index indicator. The accumulation starts with the very first bar loaded (not displayed) on the chart.

Visually the ASI line resembles very much the smoothed price curve itself, however on a different scale. This allows using standard support/resistance analysis, including finding breakouts, divergences, new highs and lows.

NOTE. Since the ASI uses the cumulative sum starting with the very first bar loaded on the chart, it depends on all previous data. If you change the charts start date/time, the cumulative sum most certainly changes, and so does the ASI. Therefore, be very careful when using the ASI in a trading strategy because the buy and sell signals depend on previous data loaded on chart.

 

Reference

J. Welles Wilder Jr., “New Concepts in Technical Trading Systems”, Section VIII. Printed by Hunter Publishing Company, Winston-Salem, NC. 1978. ISBN 0-89459-027-8.