Accumulation swing index(ASI)

ASI was created by Welles Wilder.

The Accumulation Swing Index is a trend line trading indicator that is used to show the trader the direction of the market.That is,whether the market is moving upwards or downwards.Therefore,the trendline for ASI can be compared to the trend line drawn on the candle sticks chart.

Accumulation swing index normally ranges between -100 to 100.
The ASI indicator can be calculated by using its opening,closing,high and low prices.

Since the ASI ranges between -100 to 100,it follows that when the ASI is trending from 0 towards 100,then that is an indication of an uptrend market thus the traders should be trading upward,while when the ASI is trending from 0 towards -100,then that is an indication of a downward trend market thus the trader should be trading downwards.This is indicated as from the candle sticks chart below;



From the candle stick chart above,there are 3 points,point A,B and C. At point A,there are two arrows,one pointing downwards and another one pointing upwards.The one pointing downwards is trending from 0.0000 towards the negative values while the one pointing upwards is trending from 0.0000 towards the positive values.At point B,there is an upward arrow trendline drawn at the ASI curve while at point C,there is a downward arrow trend line drawn at the ASI curve.At point B,since the ASI has an uptrend from 0 going positively upwards which is also indicated from the candle sticks chart,then the trader should be trading upwards(making a buy position) while at point C where the ASI has a downward trend from 0 going negatively downwards,then the trader should be trading downwards(making a sell position)


Recommendation: If you are a day trader,just use,1 min,5 min,15 min and 30 min time frame while if you are a swing trader just use 1 hour and above time frame if you want Accumulation Swing Index to work well for you


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