The Accumulation Swing Index (ASI) is a cumulative total of the Swing Index. Welles Wilder, the creator of ASI indicator, in his book "New Concepts in Technical Trading Systems" describes the indicator this way: "When the Index is plotted on the same chart as the daily bar chart, trend lines drawn on the ASI can be compared to trend lines drawn on the bar chart. For those who know how to draw meaningful trend lines, the ASI can be a good tool to confirm trend-line breakouts. Often erroneous breaking of trend lines drawn on bar charts will not be confirmed by the trend lines drawn on the ASI. Since the ASI is heavily weighted in favor of the close price, a quick run up or down during a day's trading does not adversely affect the index."
The Swing Index has the following characteristics:
- It provides a numerical value quantifying price swings.
- It defines short-term swing points.
- It cuts through the maze of open, high, low, and closing prices and indicates the real strength and direction of the commodity.