The Accumulative Swing Index (ASI) is a trend-tracking indicator developed by J. Welles Wilder, designed to give traders a broader view of market direction by cumulatively summing Swing Index values over time. It helps identify whether a market is trending up, down, or moving sideways.
How It Works
The ASI builds upon the Swing Index, which factors in price relationships between current and previous opens, highs, lows, and closes.
Each Swing Index value is added over time, resulting in a cumulative line that reflects overall market sentiment and trend direction.
How to Interpret It
A rising ASI line indicates an uptrend
A falling ASI line suggests a downtrend
If ASI is fluctuating around zero, the market is likely in a sideways range
Divergence between the ASI and price action can be an early sign of a potential reversal
How to Use It in FX Replay
Use ASI to confirm the strength of a trend alongside price structure or market cycles
Look for divergence setups between ASI and price to spot possible trend changes
Combine with momentum or volatility indicators for better timing on entries and exits
Keep in Mind
The ASI is a cumulative indicator, which means it may respond more slowly to sudden shifts in market direction. For best results, pair it with other tools like FVGs, market structure, or order flow concepts in your FX Replay backtesting workflow.