Force Index

Force Index Interpretation:

This indicator obtained using the difference between closing prices and volume, allows you to measure the strength of buying and selling. You can apply a Wilder moving average to smooth the indicator. When the indicator is above the 0 level buyers rule over sellers and when the indicator is bellow 0 level sellers dominate the buyers.

It also gives good divergence signals.

A bullish divergence occurs when the price makes new lows while the indicator fails to make new lows. A bearish divergence occurs when the price makes new highs while the indicator fails to make new highs.


Force Index=today's close-yesterdays' close*Volume.

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