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.
Accumulation Swing Index Indicator Explanation
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
- Open a buy position just after the breakout
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Accumulation Swing Index Indicator: Sell Condition
- Break below an upward trend line
- Break below a support level during a consolidation
- Open a sell position just after the breakout