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The Accumulation Swing Index is essentially a cumulative total of the Swing Index developed by Welles Wilder. To quote "Somewhere amidst the maze of Open, High, Low and Close prices is a phantom line that is the real market." The ASI is supposed to show where this imaginary line is, so it obviously closely resembles the real price. As this is the case, you can try finding support/resistance using the ASI itself, such as looking for breakouts, new highs and lows, divergences or day trading the Camarilla levels. Wilder noted that the ASI provides a numerical value that quantifies price swings, defines short-term swing points and cuts through the chaff of OHLC prices indicating the real direction & strength of the market move. The Accumulation Swing Index require opening prices, and the details of the calculation are too complicated to approach here, but is often used as the basis for a free day trading tip newletter system or suchlike. |
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