Return value for the ForceIndex technical indicator for the price selected.

This indicator need volume values.

Syntax:

Calculation:

Force Index=(today’s close-yesterday’s close)*Volume.

Interpretation:

This indicator obtained using the difference between closing prices and voulmes allows you to measure 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 below the 0 level sellers dominate buyers. It also gives good divergence signals.

A Bullish divergence occurs when the stock price makes new lows while the indicator fails to make new lows.

A Bearish divergence occurs when the stock price makes new highs while the indicator fails to make new highs.

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