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Key Takeaways

Difficulty:Intermediate
Reliability:High
Category:volume
Timeframes:Daily, Weekly

Force Index

volumešŸ“Š Daily, Weekly

Dr. Alexander Elder indicator combining price change, direction, and volume.

Formula

Code
Force Index = (Close - Previous Close) Ɨ Volume
EMA smoothed version commonly used

Detailed Explanation

Force Index measures the force behind price moves by combining direction, magnitude, and volume.

**Interpretation:** - Large positive: Strong buying - Large negative: Strong selling - Near zero: Balance between buyers/sellers

Parameters

EMA Period
Default: 13
Smoothing period

šŸ“ˆ Bullish Signals

Force Index crosses above zero in uptrend, bullish divergence

šŸ“‰ Bearish Signals

Force Index crosses below zero in downtrend, bearish divergence

Python Implementation

Force Index calculation

Python
import pandas_ta as ta
df['Force'] = (df['close'] - df['close'].shift(1)) * df['volume']
df['Force_EMA'] = ta.ema(df['Force'], 13)

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("Force Index")
force = ta.ema((close - close[1]) * volume, 13)
plot(force, "Force", color=color.blue)
hline(0, "Zero")
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MT5 MQL5 Code

C++
int force_handle = iForce(_Symbol, _Period, 13, MODE_EMA, VOLUME_TICK);

Python Libraries

pandas-ta
Technical analysis
pip install pandas-ta

Common Mistakes

āœ—Using raw Force Index without smoothing
āœ—Ignoring divergences

Confirmation Signals

EMA trend
Price action
Other volume indicators

Best For

Volume-price analysisTrend confirmationPullback entries

šŸ’” Pro Tips

  • ā€¢Use 2-period EMA for short-term
  • ā€¢Use 13-period EMA for intermediate
  • ā€¢Combines three key elements: direction, extent, volume
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical IndicatorsBabyPips - Technical IndicatorsMetaTrader 5 Docs

Frequently Asked Questions

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Volume-weighted RSI that measures buying and selling pressure using price and volume.

Elder Ray Index

Dr. Alexander Elder's indicator measuring Bull Power and Bear Power relative to an EMA.

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