Force Index - FI

Force Index (FI)

Force Index (FI)

Force Index (FI)

Force Index (FI)

Force Index - FI created Alexander Elder, in his classic book, Trading for a Living. The Force Index (FI) is an Technical indicator that uses price and volume to assess the power behind a move or identify possible turning points. High positive values mean there is a strong rising trend, and low values signify a strong downward trend. The Force Index (FI) can be used to reinforce the overall trend, identify playable corrections or foreshadow reversals with divergences.

Mathematical Formula:
Force Index (1) = {Close (current period)  -  Close (prior period)} x Volume
Force Index (13) = 13-period EMA of Force Index (1)