SwingIndex (Function)

image\trumpet2.gif Disclaimer

The SwingIndex function returns a positive or negative value that represents the comparative up or down swing strength between two bar periods.

Function

SwingIndex

Returns (Double)

A numeric value containing the current Swing Index.

Parameters

None

Remarks

The SwingIndex function examines the following four cross-bar comparisons and one intra-bar comparison that are strong indicators of an up day or a down day:

  1. Close today above or below previous Close.
  2. Close today above or below Open today.
  3. High today above or below previous Close.
  4. Low today above or below previous Close.
  5. Previous Close minus previous Open.

If the factors pointed toward an UP day, the SwingIndex would be a positive value from zero and one hundred. If the factors pointed toward a DOWN day, the function would return a value between zero and negative one hundred.

image\swingindex_formula.gif

…where

K = the larger of

  • H2-C1

  • L2-C1

L = value of a limit move in one direction.

To obtain R, first determine the largest of:

  • H2-C1 – If the largest, R=(H2-C1)-.5(L2-C1)+.25(C3-O1)

  • L2-C1 – If the largest, R=(L2-C1)-.5(H2-C1)+.25(C3-O1)

  • H2-L2 – If the largest, R=(H2-L2)+.25(C3-O1)

  Since only futures have a relative daily limit value, this function only makes sense if it is applied to a futures contract. If you use the Swing Index Indicator or Accumulation Swing Index Indicator and it only plots a zero flat line check the Daily Limit value.

Example

Plot1(SwingIndex);

Reference

Wilder, J. Welles, Jr. New Concepts in Technical Trading Systems (Greensboro, NC: Trend Research, 1978).