The Force Index, developed by Dr. Alexander Elder, combines three elements of market information — the direction of price change, the magnitude of the price change, and the volume of trading — into a single oscillator that measures the power (force) behind price movements. It is calculated as: Force Index = (Current Close – Prior Close) × Volume. A positive Force Index indicates that buying force is dominant — the price rose and volume confirmed the move. A negative Force Index indicates that selling force is dominant — the price fell with volume backing the decline. The raw Force Index is extremely volatile and is typically smoothed using a 2-period EMA (for short-term signals) or a 13-period EMA (for intermediate-term trend confirmation). Elder used the Force Index as part of his Triple Screen trading system — a 2-period EMA of Force Index is used to time precise entries (buy when it briefly turns negative within an uptrend), while the 13-period EMA identifies the dominant force (buy when above zero, sell when below). In Indian F&O markets, the Force Index is applied to Nifty 50 and sector ETF analysis to confirm the conviction behind price movements.
For android only
