High positive values mean there is a strong rising trend, and low values signify a strong downward trend.
Force Index (1) = {Close (current period) - Close (prior period)} x Volume
Force Index (13) = 13-period EMA of Force Index (1)
To get the value for force index(13)
(1) Draw EMAC(13)
(2) Minus EMAC(13), example 1.1, of today against EMAC(13), example 1.08, of yesterday. You will get 0.......There are many people who talk about force index. My brokerage Iocbc do not have this indicator, thus I dont bother to go and learn.
However, curiosity overwhelm me yesterday. I went to download ChartNexus and read up about Force Index online.
In this post I shall share what I have learnt and understood from my research.
The Force Index is an indicator that uses price and volume to assess the power behind a move or identify possible turning points.
