How ACC/ Swing Index is used as an application?
To use this application , the following formula is used :
SI(i) = 50*(CLOSE(i-1) – CLOSE(i) + 0,5*(CLOSE(i-1) – OPEN(i-1)) + 0,25*(CLOSE(i) – OPEN(i)) / R)*(K / T)
ASI(i) = SI(i-1) + SI(i)
SI (i) — current value of Swing Index technical indicator;
SI (i – 1) — stands for the value of Swing Index on the previous bar;
CLOSE (i) — current close price;
CLOSE (i – 1) — previous close price;
OPEN (i) — current open price;
OPEN (i – 1) — previous open price;
R — the parameter we get from a complicated formula based on the ratio between current close price and previous maximum and minimum;
K — the greatest of two values: (HIGH (i – 1) – CLOSE (i)) and (LOW (i – 1) – CLOSE (i));
T — the maximum price changing during trade session;
ASI (i) — the current value of Accumulation Swing Index.
The formulae leads to a daily value that lies between -100 and +100.
These rules apply only to the ASI and must be correlated with the price action point.
Buy Signal: Upside Breakout Ã¢?? ASI exceeds a previously significant High Swing Point
Sell Signal: Downside Breakout Ã¢?? ASI drops below a previously significant Low Swing Point