What is Accumulative Swing Index(ASI), Trading Strategy

The Accumulative Swing Index (ASI) indicator helps you to get long term trending view. this indicator line will oscillate above and below the ‘zero’ line. Above the ‘ zero’ line is the positive side, And below the ‘zero’ line is a negative line.

if the indicator line is below the ‘zero’ line this shows you show stock price weakness, if the indicator line is above the ‘zero’ line this shows the stock price is bullishness.

ASI indicator Setting

Go to the indicator search section in your trading software. Then search for “Accumulative Swing Index”.

Accumulative swing index indicator settings

Limit Move Value: by default value is 0.5. you can change this value. below chart, on the right side, you will see the numbers. above ‘0’ is the positive side and below ‘0’ is the negative side. This is the ‘0’ line.

asi indicator

If you increase this value indicator will right side value will be changed. see the below chart. here, I’m changing values 0.5 to 5 and see the difference in the right side.

ASI indicator settings

Result: color setting for ASI indicator Line. By default, it’s a black ASI indicator line. You can change it.

Accumulative swing index indicator trading strategy

Strategy 1

  • This indicator move with the price chart.If the ASI indicator above 0 line and going to upward direction then share price can gain.
  • If the ASI indicator touch ‘0’ line and falling down, then the share trend may changing to a downtrend, and share price can fall more.
  • above 0 line value of ASI indicator is -uptrend.
  • below 0 line value of ASI indicator is – downtrend.

Strategy 2

Use this indicator with other indicators will give you a more correct signal,. you can use this indicator with MACD, RSI, or alligator or many other indicators combined with this indicator.

Make sure why both indicators will give you a bullish or bearish signal then you can enter or exit from the stock.

If you are using this indicator with RSI indicator then, in the RSI indicator, above 50 is bullish and below 50 is bearish signal. you can confirm the Accumulative Swing Index indicator signal with RSI for better trading.

Conclusion

Accumulative Swing Index indicator helps you, to Trade in a positive or negative (short sell) for a long time until it touches ‘0’ line and changes Indicator direction.

If this indicator moves in an upward direction. Above the ‘0’ line you can buy this stock. You can hold this stock until this indicator falls down to the ‘0’ line.

If this indicator moves in a downward direction. below ‘0’ line you can sell this stock And can hold stock. You can enjoy full trends using the ASI indicator.

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