Indicators: Swing Index

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Swing Index:

Swing Index is a math expression of the operations activity for the last two bars.

The indicator marks an "actual" instrument price by binding the current (Open, High, Low and Close) and previous prices. The data concerning the open prices must be available for the index calculation.

The following index characteristics should be noted:

  • The indicator describes price volatility;
  • Short-term price range is determined;
  • The confusion caused by several price types (High, Low, Close) is removed, the possibility to determine the actual power and market movement direction is provided.

Author: Nikolay Kositsin

Swing Index indicator

 

Swing Index

The Swing Index is a technical indicator that predicts future short-term price action:

  • When the Swing Index crosses over zero, then a short-term price movement upward is expected.
  • When the Swing Index crosses below zero, then a short-term price movement downward is expected.

A few of the many buy and sell signals are shown below in the chart of the E-mini Russell 2000 Futures contract:


As can be noted from the chart above of the e-mini futures contract, numerous buy and sell signals are given. The Swing Index was made for very short-term trading.

The Swing Index is best used in its later format, the Accumulative Swing Index (see: Accumulative Swing index in MT5 CodeBase)

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