Accumulation Swing Index indicator is an oscillator indicator ranging from -100 to +100 with its oscillation at point 0.
Being an oscillator indicator, the Accumulation Swing Index indicator was created by Welles Wilder with the main objective of helping traders to know when the market is trending upwards and downwards. Because of this, it can be considered to be using the concept of divergence to determine the market direction
Since the ASI ranges between -100 to 100 with its oscillation at point 0 according to Welles Wilder,it therefore follows that when the ASI is trending from 0 towards 100, then that is an indication of an uptrend market thus the traders should be trading upwards,while when the ASI is trending from 0 towards -100,then that is an indication of a downward trend market thus the trader should be trading downwards.This is indicated as from the candlesticks chart below;
From the candlestick chart above, there are 3 points, point A,B, and C. At point A,there are two arrows, one pointing downwards and another one pointing upwards. The one pointing downwards is trending from 0.0000 towards the negative values while the one pointing upwards is trending from 0.0000 towards the positive values. At point B, there is an upward arrow trendline drawn at the ASI curve while at point C, there is a downward arrow trend line drawn at the ASI curve. At point B,since the ASI has an uptrend from 0 going positively upwards which is also indicated from the candlesticks chart,then the trader should be trading upwards(making a buy position) while at point C where the ASI has a downward trend from 0 going negatively downwards, then the trader should be trading downwards(making a sell position)
Recommendation: If you are a day trader,just use,1 min,5 min,15 min and 30 min time frame while if you are a swing trader just use 1 hour and above time frame if you want Accumulation Swing Index to work well for you
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