| Equity Based Analysis > Technical Analysis > Indicators > Accumulation Swing Index (ASI) |
The Accumulation Swing Index (ASI) attempt to show the "real market". This indicator is used by traders to gauge a security's long-term trend by comparing bars which contain its opening, closing, high and low prices throughout a specific period of time.
When the ASI is positive, it suggests that the long-term trend will be higher, and when the ASI is negative, it suggests that the long-term trend will be lower.
Developed by J. Welles Wilder, this indicator is explained in Wilder’s book named “New Concepts in Technical Trading Systems”.
ASI = SwingIndex + PrevASI
SwingIndex = The SwingIndex indicator value
PrevASI = The previous value of the indicator
Inputs:
Limit Move= 3
The following table lists the limit moves for several commodities. You can get a list of limit moves from your broker.
|
Commodity |
Limit Move |
|
Coffee |
$0.06 |
|
Gold |
$75.00 |
|
Heating Oil |
$0.04 |
|
Hogs |
$0.015 |
|
Soybeans |
$0.30 |
|
T-Bonds |
$3.00 |
You may need to adjust the limit moves shown in the above table based on the position of the decimal in your data. For example, if the price of corn is quoted as $2.45, the limit move would be $0.10. However, if the price of corn is quoted as $245.00, the limit move would be $10.00. If the security does not have a limit move (e.g., a stock or some futures), use an extremely high value (e.g., $30,000).
Indicator Type: Momentum