Force Index

Force Index Technical Indicator

The Force Index Technical Indicator, developed by Alexander Elder, measures the Bulls Power at each increase and the Bears Power at each decrease. It combines important market information such as price trend, drops, and transaction volumes.

Using Moving Average

While the index can be used as it is, it is recommended to approximate it with the help of Moving Average. The author suggests using a short moving average (2 intervals) to identify optimal positions for opening and closing. On the other hand, a long moving average (period 13) can be used to analyze trends and their changes.