Force Index technical indicator was developed by Alexander Elder. This index measures the Bulls Power at each increase, and the Bears Power at each decrease. It connects the basic elements of market information: price trend, its drops, and volumes of transactions. This index can be used as it is, but it is better to approximate it with Moving Average. Approximation using the short moving average (the author proposes to use 2 intervals) contributes to finding the best opportunity to open and close positions. If the approximations is made with long moving average (period 13), the index shows the trends and their changes.
Have more questions? Submit a request