Elder Force Index Indicator (Usage, Examples) Formula

The Elder Force Index is an indicator that uses price and volume to assess the power of a move or vary in turning points. It is developed by Alexander Elder. It was introduced in Alexander Elder’s classic book, Trading for a Living: Psychology, Trading Tactics, Money Management (Wiley Finance). The Force Index are three essential elements are direction, extent, and volume of a stock’s price movement. This indicator can be used to reinforce the overall trend, identify playable corrections or foreshadow reversals with divergences. The indicator not only reflects the market trend but also identify the divergence situation. Here, after describing the features and calculation method of the indicator, we will go for examples from different broker software platform. read more