Force Index Indicator
The force index indicator developed by Alexander Elder, is invented to measure the power behind every price move based on three elements, which are direction, extent, and volume.
The Force Index combines all three as an oscillator that oscillates in the positive and negative area as the power shifts. The Force Index reinforces the overall trend and identifies playable corrections or reversals with divergences.
Force Index Calculation
Force Index (1) = [Close (current period) – Close (prior period)] x Volume
Force Index(13) = 13-period EMA of Force Index(1)