Wilder Swing Index (SI) is a part of Wilder’s Swing Index System. In itself the SI is useless, it doesn’t generate any signals, but its formula combines factors that have great deal of interest.
The values of SI are used to form Accumulated Swing Index (ASI).
Wilder has determined that the five most important positive patterns in an uptrend are:
1. Today’s close is higher than the prior close.
2. Today’ close is higher than today’s open.
3. Today’s high is greater than the prior close.
4. Today’s low is greater that the prior close.
5. The prior close was above the prior open.
On a downtrend, these patterns are reversed.
SI combines these five factors, then scales the resulting value to fall between 100 and +100 as follows:
SI = 50x((C
t-C
t-1 + 0.5x(C
t - O
t)+0.25*(C
t-1-O
t-1))/R) x K/M
Where K is the largest of H
t – C
t-1 and L
t – C
t-1M is the value of a limit move (in the Marketscope this value is 300, the same value is used in MT).
R is calculated from the following two steps:
1. Determine which of the largest of:
a. H
t – C
t-1b. L
t – C
t-1c. H
t – L
t2. Calculate R to the corresponding formula:
a. R = (H
t – C
t-1) – 0.5(L
t – C
t-1) + 0.25(C
t-1 – O
t-1)
b. R = (L
t – C
t-1) – 0.5(H
t – C
t-1) + 0.25(C
t-1 – O
t-1)
c. R = (H
t – L
1) + 0.25(C
t-1 – O
t-1)
The indicator was revised and updated
Please, download both: SI.lua and SI.lua.rc files because otherwise there will be no correct indicator name and indicator description in the Marketscope II.