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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.