The Accumulative Swing Index created by Welles Wilder attempts to find the swing line within the bar. Originally created to apply to daily bars, as there is a market or user defined value of the maximum price change that can occur during the trading session. Using the study on intra-day bar data will require the user to specify a limit value for the given bar interval.
Welles Wilder created this indicator based on the below important reference points:
- Today’s close is higher (lower) than the prior close
- Today’s close is higher (lower) than today’s open
- Today’s high (low) is greater (less) than the prior close
- Today’s low (high) is greater (less) than the prior close
- The prior close was above (below) the prior open.
Configuration Options
- Limit Move Value: Maximum price change during a trading session
- Result: Color of the technical indicator
- Display Axis Label: Check to show the axis label
Formula
where \(SI_{t}\) is the current bar’s swing index calculated by the formula:
where
\(T\) is a user defined value which means the maximum price change during a trading session.
\(R\) is a value calculated on the base of the relationship between current close price and previous high and low prices. The formula is:
where