Trend direction and Force Index Indicators
This thread can be used for all types of Trend Direction Force Index and Force Index indicators
DEFINITION of ‘Force Index.
The Force Index is an oscillator whose value fluctuates between zero and one. It uses price movement and volume to determine the forces behind price movements and identify potential trends. To calculate a 1-period Force Index, use the following formula:
Force Index (1) = Close (current period) and Close (prior period). x Volume
Alexander Elder, who created the indicator, suggested that a 13-period Force Index be used.
Force Index (13) = 13 period exponential moving average Force Index(1)
The 13-period Force Index confirms short term uptrends when it is above zero and short-term downtrends if it is below zero. If the Force Index diverges with price it means that a trend change is possible.