Application of Accumulation Swing Index

To use this application , the following formula is used :

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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.

These rules apply only to the ASI and must be correlated with the price action point. 

Buy Signal: Upside Breakout â?? ASI exceeds a previously significant High Swing Point 

Sell Signal: Downside Breakout â?? ASI drops below a previously significant Low Swing Point