Force Index

The Force Index developed by Elder

The Force Index was developed by Dr. Alexander Elder and measures the power behind a price move using price and volume. The indicator is primarily used used to detect divergences but can also be used for trend confirmation.

Indicator Description

The Force Index combines direction, extent and volume producing an oscillator that fluctuates above and below a Zero Line:

1. Direction – If prices move up during a period, it indicates that buyers are stronger than sellers. Conversely, if prices move down sellers are stronger than buyers.

2. Extent – Significant price moves shows high levels of buying or selling pressure.

3. Volume – High volume shows a strong commitment underlying the price movement.

Our version of the Force Index comes with the option of calculating with Relative Volume. The oscillator values can furthermore be normalized.

The indicator is available for NinjaTrader 8.