This is the traditional Force Index indicator developed by Alexander Elder and described in his book "Trading For a Living". As you probably know, the Force Index measures the amount of power used to move the price of an asset. The formula is pretty simple - the difference between the current and the previous close is multiplied by the volume of the current close. However, I wanted to add some additional features to the indicator, so that you have more control over it. Improvements include:
- Choose the length of the Force Index
- Choose the time frame of the FI (you can choose a smaller time frame and get a more detailed overview);
- Smoothing of the results through a Moving Average (Simple, Exponential, Weighted, Running or Hull);
- Choose the time frame of the smoothing MA for even greater control;
- Color changing depending on the increasing or decreasing smoothed Force Index;
I used to use Force Index for spotting divergences and exhaustions and it worked pretty well, but it does require some time until you get used to it. Bear in mind that you shouldn't jump against the trend on every divergence that occurs, but use it as a complementary indicator to your trading system. I am planning to add some additional features to this indicator to make it more robust, so stay tuned.
I hope you find this indicator useful. As usual, if you have any questions or suggestions on how to improve my indicators, please let me know. Thanks.
- Choose the length of the Force Index
- Choose the time frame of the FI (you can choose a smaller time frame and get a more detailed overview);
- Smoothing of the results through a Moving Average (Simple, Exponential, Weighted, Running or Hull);
- Choose the time frame of the smoothing MA for even greater control;
- Color changing depending on the increasing or decreasing smoothed Force Index;
I used to use Force Index for spotting divergences and exhaustions and it worked pretty well, but it does require some time until you get used to it. Bear in mind that you shouldn't jump against the trend on every divergence that occurs, but use it as a complementary indicator to your trading system. I am planning to add some additional features to this indicator to make it more robust, so stay tuned.
I hope you find this indicator useful. As usual, if you have any questions or suggestions on how to improve my indicators, please let me know. Thanks.
Release Notes:
The updated version includes:
✔️ Minor code modifications and update
✔️ Minor code modifications and update