The Swing Index is often used as a part of the Accumulation Swing Index because alone it tends to create an inconstant plot. The Swing Index compares the links between the ongoing prices. They can be low, high, open and close. It links these with the previous period’s prices to hold aside the real security’s price.
The Accumulation Swing Index shows this phantom line – the line of the real market.The Accumulative Swing Index uses a scale from 0 to 100 for an up trend and 0 to -100 for a down trend.
The Swing Index indicator appoints a Swing Index value from 0 to 100 for an up bar and 0 to -100 for a down bar. It uses both the ongoing bars – High, Low, Open and Close and the latest bar’s Open and Close to measure the Swing Index values. When a cross falls below 0 it demonstrates a fall in Forex market price. Vice versa, when the Swing Index crosses over 0, a short-term price raise is predicted. A smaller or larger swing index value shows the sternness of the Forex market’s price’s increase or decline.
Some Important points :
ASI has positive value — uptrend.
ASI has negative value — downtrend.
ASI trend line breakout — validates a breakout on the price chart.