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Meaning / Definition of

Swing Index

Categories: Stocks, Technical Analysis,

Component of the Accumulation Swing Index that determines the "real" price of a security by examining current and previous period pricing and the relationships that existed during those time periods. The index uses 10 different variables to determine the "real" price of the index. The following formula is used to arrive at that price: 50 * [ { Cy - C + 0.5(Cy - Oy) + 0.25(C - O) } / R ] * (K / T) Each letter represent a different variable. 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.

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