Force Index

The Force Index attempts to identify bullish (high positive Force Index), bearish (low negative Force Index) or non-trending (oscillates around zero) stocks using price and volume information.

Force Index

The Force Index attempts to identify bullish (high positive Force Index), bearish (low negative Force Index) or non-trending (oscillates around zero) stocks using price and volume information.

 


Force Index Formula

The formula for the Force Index is:

Formula for the Force Index is EMA (Close[0] - Close[1]) * Volume[0])
 

Force Index Interpretation

When there is a bullish Divergence between the Force Index and price chart and the Force Index is less than zero then a long position could be considered. Conversely, when there is a bearish divergence between the Force Index and price chart and the Force Index is greater than zero then a short position could be considered. 



Force Index charted below the Price graph shows bullish and bearish divergence

Related Terms