Accumulative Swing Index - ASI

  

As soon as everyone arrives at the party, the husbands put their car keys in one fish bowl, and the wives put their car keys in another––oh, wait. That's a different swing index.

An accumulative swing index is actually a long term trend index, used by chartists and math-loving traders, which assesses the bias of a given stock and its trading pattern. Myriad complex elements get analyzed, with a focus on the open, closed, high, and low prices as they've traded throughout a given day, mapped to other days, mapped to periods of the year, mapped to the performance relative to the overall stock and usually options markets. Blood-sniffing traders are hunting for trend line breakouts that would give them a signal that the moon has, in fact, aligned with Aquarius, and Jupiter is hugging Mars with its gravity...so then of course it must be time to short GOOG.

Right? Isn't that how chartists work? Maybe we should ask the fish bowl.

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Finance: What is a Chartist?26 Views

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Finance allah shmoop What is a chartist Well here's a

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chart and here's a chart and here's a chart All

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right Well these are pages from the investing bible of

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a chartist A chartist is an investor really a traitor

00:19

as they tend to own stocks for a much shorter

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period of time than a longer term Really invest or

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type person a chartist relies solely on the patterns The

00:31

pattern's right there These are all patterns imputed by the

00:34

charts that they you know sitting poor threw for hours

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and hours So check out this chart see how the

00:40

plotted data closely follows the characteristic line there The characteristic

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line basically is plodded through all those dots Yes So

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they're going to stare at that try to figure out

00:50

where that line is going in the future right Get

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the crystal ball or all right Well let's look at

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this one where the data forms what looks like Well

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the head and shoulders of someone who you know doesn't

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have a neck that's Just common pattern in trading And

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you know if you stopped looking at it and two

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thirds of the way through there it's heading down Well

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Maybe you'd be short the stock for a few days

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and then you see it bottoming and then you'd be

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long and try to make money that way Good luck

01:16

All right len look at this chart Where is right

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here where the data appears to We'll break away from

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the established pattern which was all just kind of boring

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Lee along down here And then suddenly everything goes up

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Yeah start doing its own thing Well maybe the company

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reported a good quarter or ah you know the government

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cut taxes again Everything went up So these were the

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tools of the chartist The chart's a chartist is the

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opposite of a fundamental investor meaning that she doesn't know

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or care what the company does for a living Really

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she doesn't care about their p e ratio nor their

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profit margins nor their debt levels on their balance sheet

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nor much of anything fundamental about how their business runs

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Chartist just care about the pattern they glean from the

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charts and all the charts always work until they don't

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And what happens when the meteor hits that is that 00:02:06.0 --> [endTime] predictable on a chart Ah

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