Description

• Invented by Welles Wilder, it is the cumulative total of swing index
• It uses open, high, low and close of current & previous bar to get or isolate real price
• It helps to understand primary trends of stock prices
• It is either a positive or a negative value, which can be infinite
• Shape of indicator is more or less similar to price graph or line

Interpretation

• It defines short-term swing points
• It provides numerical value that quantifies price swings
• If indicator crosses zero level upward, it is a bullish signal indicates uptrend
• If indicator crosses, zero level downward it is a bearish signal indicates downtrend

Default Parameters Used/Inputs

• Open Line
• High Line
• Low Line
• Close Line
• Limit

Returns/Output

Accumulation Swing Index value for the stock

Formula

AccSwgIndx = AccSwgIndx-1 +Swing Index0