ASI is basically a new name I am giving to my Gain/Loss Moving Average indicator. If you normalize ASI with the moving average of all the changes in price, it becomes identical to . So ASI is basically non-normalized , that is why it should be a more accurate representation of price momentum.
ADMF is an and . Both ASI and ADMF are not range-bound so it is not easy to compare them against each other. When equation is applied to them, they both become range-bound and comparable. The gaps between the two indicator can reveal valuable information about market dynamics. The chart below shows some examples (note the settings).
For conventional usages of , please read https://www.tradingview.com/wiki/Stochas...) and https://www.tradingview.com/wiki/Stochas...). I recommend you to find the optimal length by playing with the length in the indicator settings. If this parameter is calibrated properly, this indicator can be a powerful tool for identifying market cycle.
You can get these features (ATH, ATL detection and historical ) for any other indicator using the script below: