MRPNL

Force Index

FI

Combines price direction, magnitude of move, and volume into a single oscillator; crosses above zero signal buying force, below signal selling force.

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Formula

Force Index (raw) = (Close_t − Close_{t-1}) × Volume_t

The Force Index, also by Dr. Elder, multiplies the price change (Close − Prior Close) by volume to express the "force" behind each move. A large positive number means a big up bar on heavy volume; a large negative number, a big down bar on heavy volume.

The raw Force Index is extremely noisy; a 2-period EMA smooths it for short-term signals while a 13-period EMA reveals the dominant force. When the 2-period Force Index drops negative during an uptrend, it identifies pullback entry points. Combined with Elder Ray, it forms the core of Elder's "Triple Screen" system.

#volume#momentum

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