Accumulated Swing Index
factor.formula
A =
A represents the absolute value of the difference between the highest price of the day and the closing price of the previous day, which measures the fluctuation range of the highest price of the day relative to the closing price of the previous day.
B =
B represents the absolute value of the difference between the lowest price of the day and the closing price of the previous day, which measures the fluctuation range of the lowest price of the day relative to the closing price of the previous day.
C =
C represents the absolute value of the difference between the highest price of the day and the lowest price of the previous day, which is used to measure the potential fluctuation range of the day, taking into account possible gaps.
D =
D represents the absolute value of the difference between the previous day's closing price and the previous day's opening price, which measures the price fluctuation of the previous day.
E =
E represents the difference between the closing price of the day and the closing price of the previous day, which measures the net change in price.
F =
F represents the difference between the closing price and the opening price for the day, measuring the net change in price for the day.
G =
G represents the difference between the previous day's closing price and the previous day's opening price, measuring the net price change from the previous day.
X =
X is a composite price change indicator that combines the change in the current day's close relative to the previous day's close (E), half the weight of the current day's close relative to the current day's open (F), and the change in the previous day's close relative to the previous day's open (G) to measure composite price momentum.
K =
K takes the maximum value of A and B, representing the maximum fluctuation range of the highest and lowest prices of the day relative to the closing price of the previous day.
R =
R is a weighted price fluctuation range, and the calculation method is determined by the size relationship between A, B, and C. When A > B and A > C, A is used with the highest weight; when B > A and B > C, B is used with the highest weight; otherwise, C and the previous day's fluctuation range D are used. R is used to measure the overall price fluctuation range and can capture the characteristics of price fluctuations in different situations. It is a standardized parameter for calculating SI.
SI =
SI (Swing Index) is the oscillation index for the day, which is scaled by dividing X by the product of R and K and multiplying by 16. This formula takes into account the direction of price change (X), the price fluctuation range (R), and the maximum fluctuation range relative to the previous day's closing price (K), thereby measuring the oscillation strength of the price for the day and normalizing it. SI values can be positive or negative, with positive values indicating that prices fluctuate in a favorable direction and negative values indicating that prices fluctuate in an unfavorable direction.
ASI(N) =
ASI (Accumulated Swing Index) is an N-day cumulative oscillation index, which is obtained by accumulating the SI values of the past N trading days. This indicator smoothes the oscillation of a single day, can more clearly show the long-term trend of prices, and can reflect the overall momentum of the market.
in:
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The highest price of the day indicates the highest price reached during that trading day.
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The lowest price of the day indicates the lowest price reached during that trading day.
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The closing price of the day indicates the last transaction price at the end of the trading day.
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The opening price of the day indicates the price of the first transaction at the beginning of the trading day.
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Represents the data of the previous trading day. For example, CLOSE[t-1] represents the closing price of the previous trading day.
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Represents the absolute value function, which returns a non-negative value of a number.
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It means taking the maximum value of the two values A and B.
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It represents the sum of SI values of N trading days from t-N+1 to t, that is, the cumulative sum of oscillation indices of the past N days.
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The period parameter for calculating ASI, which represents the number of days for accumulating SI. By default, the common value of N is 14 or 20, and the specific value can be adjusted according to the trading strategy and market conditions.
factor.explanation
The Accumulative Oscillator Index (ASI) evaluates the strength of market trends and possible reversal points by analyzing price fluctuations over a period of time. A positive ASI value usually indicates that the current trend is still continuing and the market momentum is strong; a negative ASI value may indicate a weakening trend or a reversal. When the ASI value turns from negative to positive, it may represent a potential buying opportunity; conversely, when the ASI value turns from positive to negative, it may represent a potential selling opportunity. The ASI can also be used to identify divergences, that is, when the price reaches a new high (low) but the ASI indicator does not reach a new high (low) at the same time, it may indicate a reversal of the trend. This indicator needs to be used in conjunction with other technical analysis tools to improve the accuracy of trading decisions.