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Swing Index (SI)
First of all, the Swing Index is used as a part of the Accumulation Swing Index because itself it creates an inconstant plot. The Swing Index compares the links between the ongoing prices - low, high open and close - and the previous period's prices to hold aside the "real" security's price.
The basic formula for the Swing Index is:
Swing Index = 50 * [ { Cy - C + 0.5(Cy - Oy) + 0.25(C - O) } / R ] * (K / T) Where:
C = Today's closing price
L = Today's lowest price
O = Today's opening price
Cy = Yesterday's closing price
Ly = Yesterday's lowest price
Oy = Yesterday's opening price
Hy = Yesterday's highest price
K = The larger of either (Hy - C) or (Ly - C)
R = A variable based on the relationship between today's closing price and yesterday's high and low
T = The limit move value
Wilder's book "New Concepts in Technical Trading Systems" provides precise instructions on measuring the Swing Index. The Swing Index indicator appoints a Swing Index value from 0 to 100 for an up bar and 0 to -100 for a down bar. It uses the ongoing bars of High, Low, Open, and Close as well as the latest bar's Open and Close to measure the Swing Index values. When a cross falls below 0 it demonstrates a fall in Forex market price. Vice versa, when the Swing Index crosses over 0, a short-term price raise is predicted. A smaller or larger swing index value shows the sternness of the Forex market's price's increase or decline.