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Accumulation/Swing Index
Description
The Accumulation Swing Index is a cumulative total of the Swing
Index. Step-by-step instructions on calculating the Swing Index are
provided in Wilder's book, New Concepts In Technical Trading Systems
for more information on the Accumulation Swing Index's parameters.
Interpretation
A breakout is indicated when the Accumulation Swing Index
exceeds its value on the day when a previous significant high swing
point was made. A downside breakout is indicated when the value of
the Accumulation Swing Index drops below its value on a day when a
previous significant low swing point was made.
You can confirm trendline breakouts by comparing trendlines on the
Accumulation Swing Index to trendlines on the price chart. A false
breakout is indicated when a trendline drawn on a price chart is
penetrated, but a similar trendline drawn on the Accumulation Swing
Index is not penetrated.
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