Oscillators

Force Index

Combines how far the price moved with how much was traded, to show the force behind a move.

2 min de lecture · Essayer sur un graphique en direct ↗

L’idée en termes simples

A big price change on heavy activity is a forceful move; the same change on light activity is weak. Force Index multiplies the change by the volume.

Mode de calcul

Each candle: the change in close multiplied by volume, then smoothed with a 13-period average.

Force = (close − previous close) × volume
Force Index = MA(Force, 13)

Comment l’utiliser

  • Above zero: buyers have the force; below zero: sellers.
  • In an uptrend, dips of Force Index below zero can be buying chances.

Tirer des conclusions

  • New highs in price without new highs in Force Index suggest the move is running out of fuel.

Exemple

A stock rallies on rising volume and the Force Index reaches its highest level in months: a strong, well-supported move.

Les prix des exemples sont donnés à titre d’illustration.

Points de vigilance

  • Uses tick volume for currencies and CFDs.

Un peu d’histoire

Dr Alexander Elder, "Trading for a Living" (1993).

Contenu éducatif uniquement. Aucun indicateur ni aucune figure ne prédit l’avenir, et rien ici ne constitue un conseil en investissement.