Free Forex Indicators (MT4), Trend Following Indicators
Accumulation Swing Index Indicator
By Arun Lama
Updated On
The Accumulation Swing Index (ASI) Indicator is a technical tool designed by Welles Wilder that attempts to identify the swing line within a trading bar.
Its primary purpose is to show the “real market” by providing an estimate of the long-term trend of a symbol’s price using the OHLC (Open, High, Low, Close) prices.
Accumulation Swing Index Indicator Overview
The ASI Indicator follows the pattern of candlesticks on the price chart of the currency pair on which it is placed, providing support and resistance levels and confirming trends once either of these technical levels is breached.
It is particularly useful for swing trading, where traders focus on small price changes in either direction and hold long or short positions for a short time before taking profits.
The ASI Indicator is a useful tool for technical analysis and can help traders catch good moves in the market.
It is best used as a confirmation tool alongside other technical indicators and price action.
The ASI Indicator generates buy and sell signals based on a breakout above or below a trend line or resistance during a consolidation.
The ASI uses the open, high, low, and close prices of a currency pair or other financial asset to estimate its long-term trend. It then shows support and resistance levels and confirms trends when those levels are breached.
Traders can use the ASI to identify buy and sell signals by looking for breaks above or below trend lines and resistance or support levels.
They can then open positions with stop loss and take profit orders based on those levels.
Accumulation Swing Index Indicator: Buy Condition
Break above a downward trend line
Break above a resistance level during a consolidation
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
