What is the force index?

The force index is a simple technical indicator that shows how much the price is changing relative to past prices. It is used to determine the strength of the current trend. The Force Index indicator uses price and volume to assess the power behind a move or identify possible turning points.

What is a one-period force index?

A one-period force index is comparing the current price to a prior price and then multiplying that by volume over that period. The value can be positive or negative. Typically the force index is averaged over several periods, such as 13, or 100.

What is a moving average & force index?

In this way, Elder has taken an extremely useful solitary indicator, the moving average, and combined it with his force index for even greater predictive success. The force index is a technical indicator that measures the amount of power used to move the price of an asset.

What are the best options for force index?

One of the most effective options for force index is compatibility with short and long term moving averages. The force index uses a short average to find possible entry and exit points, while a long one can help traders to anticipate the future direction of the trend. The force index indicator uses the following formula for calculations: