Elders Force Index
Elders Force Index (FORCE) was authored, not surprisingly by Alexander Elder. Elder first forms a raw force from the volume times the current price minus the previous price. The FORCE is then created by an exponential moving average (EMA) of the raw force, and plotted as a multi-colored histogram. A signal line which is an EMA of the FORCE is also displayed. The user may change the input (close), method (EMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Elders Force Index
If the FORCE is above the middle guide and the MA is falling a sell signal is generated. Conversely, if the FORCE is below the middle guide and the MA is rising a buy signal is given.
How To Access in MotiveWave
Go to the top menu, choose Study>Alexander Elder>Elders Force Index
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//method = moving average (ma), user defined, default is EMA
//period1 = p1, user defined, default is 2
//period2 = p2, user defined, default is 13
//prev = previous, index = current bar number
prevP = price[index-1]; vol = getVolume(index); rawForce = vol * (price - prevP); Plot1: force = ma(method, index, p1, rawForce); Plot2: ma = ma(method, index, p2, rawForce); //Signals prevMa = ma[index-1]; highSell = force for last sell signal, reset to max_negative at each buy signal; lowBuy = force for last buy signal, reset to max_positive at each sell signal; sell = force moreThan midGuide AND ma lessThan prevMa AND price moreThan highSell; buy = force lessThan midGuide AND ma moreThan prevMa AND price lessThan lowBuy;