What is ASI?
ASI (Cumulative Oscillator) is a technical indicator used to measure market swings. It provides investors with insight into market movements by analyzing stock price fluctuations.
How is ASI calculated?
1.Calculate the daily fluctuation (TR):
If the difference between today's highest and lowest prices is greater than the difference between yesterday's ** price and today's lowest price, the difference between today's highest and lowest prices will be used.
Otherwise, use the difference between today's lowest price and yesterday's ** price.
2.Calculation of the Indicator of Change (DM):
If the difference between today's lowest price and yesterday's lowest price is greater than the difference between today's lowest price and yesterday's lowest price, this difference is used.
Otherwise, set to 0.
3.Calculation of the True Volatility Indicator (TRIN):
Divide the change indicator by the volatility.
4.Calculate the ASI value:
The previous day's ASI value is added to the product of the True Volatility Indicator and the difference between today's ** price and yesterday's ** price.
How can ASI help us?
Uptrend: An increase in the ASI value indicates that the market** is gaining more momentum.
Downtrend: A decrease in the ASI value indicates an increase in the momentum of the market.
How do I trade with ASI?
Confirm the trend: Observing the change in the ASI value can help confirm the market trend.
Spot buy and sell signals: A sudden ASI value can be a potential buy or sell signal.
Conclusion
The ASI index is a powerful tool to reveal market swings. With simple math, you can get a clearer picture of what the market is moving and make more informed investment decisions. Invest carefully and act wisely!
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