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10.2 Accumulative Swing Index

The accumulative swing index (ASI) by J. Welles Wilder forms a cumulative total of certain swing index values which are a tricky weighted combination of close-to-close, open-to-close, and high-to-low range amounts each day.

The close-to-close dominates the swing index, so the ASI broadly follows the shape of the price curve. Wilder recommended looking for trend lines and breakouts in the ASI to confirm price trend lines.

The starting point (ie. the zero point) for the running total is arbitrary. In Chart it’s merely the segment of data first displayed. Wilder’s calculation applied a scaling factor based on the daily limit move, but this is not done in Chart. The shape of the resulting curve is not changed by that.

The raw swing index values can be viewed with the “Swing Index” (which is under “Low Priority” in the indicator lists because it’s of little direct use).

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