Force Index

#volume #momentum

Inventor: Dr. Alexander Elder

Measures the force behind every price move by multiplying the price change with the volume that produced it: (Close − Previous Close) × Volume. Big move on big volume = big force. Smoothed with a 2 EMA for short-term timing or a 13 EMA for the bigger trend.

Default period: 2 (timing) and 13 (trend)

Line above zero indicates buying force is winning. Line below zero indicates selling force is winning.

Useful readings:

• 13-period Force above zero: Bulls control the trend

• 13-period Force below zero: Bears control the trend

• 2-period Force dips below zero in an uptrend: Pullback, buying window

• 2-period Force pops above zero in a downtrend: Bounce, shorting window

• New price high with weaker Force peak: Rally on shrinking volume, caution

• Force spike many times normal size: Climax move, trend may exhaust soon

• 13-period Force hugging zero, crossing repeatedly: Sideways market, trend signals unreliable, stand aside

Objective rules:

• Bullish: 13-period Force Index crosses above zero.

• Bearish: 13-period Force Index crosses below zero.

• Pullback buy setup: 13-period Force above zero AND 2-period Force below zero

• Pullback short setup: 13-period Force below zero AND 2-period Force above zero

• Entry trigger: enter only when the next bar trades beyond the signal bar’s high (long) or low (short)

• Climax rule: |Force Index| > 3 × its rolling 20-bar average absolute value, book partial profits

What makes it unique:

It fuses direction, distance and volume into one number per bar — a true physics-style force reading where volume is the mass and price change is the velocity. The 2 and 13 EMA pairing gives a complete trend-plus-timing system from a single raw series.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.