Force index is a meter to track the competence of price movements. It is also used in understanding the process of its three main factors, which are magnitude, volume, and direction. The indicator usually moves around zero. This is the point of a conditional balance between power shifts. Alexander Elder modernized force index. How to Use Force Index in Trading Oscillator strength makes it possible to identify the strengthening of the various trends in the timeline:
- The indicator should be made more sensitive by reducing its phase for shorter trends.
- The indicator must be smoothed by increasing its phase for longer trends.
- Break the trend moving upward when the index value is changed from positive to negative. The cost will show a divergence oscillator.
- Break the trend moving down when the index value is changed from negative to positive. The value of the oscillator will show similarities.
- Level the correction trend moving upward when the light bounces from a maximum level towards a minimum.
- Correct the trend moving down when the indicator slides of the maximum level in the direction of growth.
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