Force index

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The force index (FI) is an indicator used in technical analysis to illustrate how strong the actual buying or selling pressure is. High positive values mean there is a strong rising trend, and low values signify a strong downward trend.

The FI is calculated by multiplying the difference between the last and previous closing prices by the volume of the commodity, yielding a momentum scaled by the volume. The strength of the force is determined by a larger price change or by a larger volume.[1]

The FI was created by Alexander Elder.[2]

References[edit]

  1. ^ Logue, Ann C. (2011). Day Trading For Dummies. Wiley. p. 196. ISBN 9781118051818. 
  2. ^ Elder, Alexander (1993). Trading for a Living: Psychology, Trading Tactics, Money Management. Wiley. ISBN 0-4715-9224-2.