SI

Swing Index

Description

Welles Wilder developed the Swing Index to provide a line "which cuts through the maze of high, low and close prices and indicates the real strength and direction of the market". This indicator is detailed in his book "New concepts in Technical Trading Systems"

Category

Momentum Indicators

Parameters

None

Chart Script

LC:=REF(CLOSE,1);
AA:=ABS(HIGH-LC);
BB:=ABS(LOW-LC);
CC:=ABS(HIGH-REF(LOW,1));
DD:=ABS(LC-REF(OPEN,1));
R:=IF(AA>BB & AA>CC,AA+BB/2+DD/4,IF(BB>CC & BB>AA,BB+AA/2+DD/4,CC+DD/4));
X:=(CLOSE-LC+(CLOSE-OPEN)/2+LC-REF(OPEN,1));
SI:16*X/R*MAX(AA,BB)