Developed by Welles Wilder, the Accumulation Swing Index is a cumulative total of the Swing Index. It compares current prices and previous prices to illustrate the 'real' price of a security. As Wilder said, "Somewhere amidst the maze of Open, High, Low and Close prices is a phantom line that is the real market." The Accumulation Swing Index is his attempt to show that line and provide a numerical value to quantify price swings.

With the Accumulation Swing Index attempting to show the "real market," it closely resembles actual prices. This allows usage of classic support/resistance analysis on the Index. Typical analysis involves looking for breakouts, new highs and lows, and divergences. The summary of the calculation for the Accumulation Swing Index is:

Previous Accumulation Swing Index + Swing Index

Step-by-step instructions on calculating the Swing Index are provided in Wilder's book, New Concepts In Technical Trading Systems.