OPEN-SOURCE SCRIPT
Force Index
What is the force index ?
The force index is an oscillator used to confirm price breakout strengths and identify potential trends.
It was popularized by A. Elder.
How the force index is computed ?
Knowing that volume is the fuel of a price movement, reliable breakouts and trend continuation are more likely to occur on high volume breakouts. This is why the force index is computed with the intensity of the price movement, and it's volume , using the formula ema13((close(n) - close(n-1)) * volume ).
How to use the force index
An important change in the force index indicate a strong momentum in the price action.
You can read more about the force index interpretation on Investopedia
Customization
You can display the indicator as an histogram, or as a line chart.
You can change EMA length, although it's recommended to keep it at default value.
The force index is an oscillator used to confirm price breakout strengths and identify potential trends.
It was popularized by A. Elder.
How the force index is computed ?
Knowing that volume is the fuel of a price movement, reliable breakouts and trend continuation are more likely to occur on high volume breakouts. This is why the force index is computed with the intensity of the price movement, and it's volume , using the formula ema13((close(n) - close(n-1)) * volume ).
How to use the force index
An important change in the force index indicate a strong momentum in the price action.
You can read more about the force index interpretation on Investopedia
Customization
You can display the indicator as an histogram, or as a line chart.
You can change EMA length, although it's recommended to keep it at default value.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.