Force Index

Owned by Chris Harrison
Last updated: Aug 19, 2022 by Brendan Hebert (Unlicensed)
1 min read

The Force Index focuses on three key pieces of market information -- price change, extent of price change and trading volume. The force of every move is defined by its direction, distance, and volume. If prices close higher, the force is positive, if lower, then negative. The greater the change in prices, the greater the force. The greater the volume, the greater the force. That is the simple but powerful concept behind Force Index.

The Daily Force index is calculated by subtracting yesterday's close from today's close, then multiplying by volume.

The Force Index study is plotted as an exponential moving average of the result of daily force index.

Default Parameters: (13) - a 13-Day EMA of the Daily Force Index