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

  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.



This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.