| The Force Index is a technical indicator that was developed by Alexander Elder. It helps traders identify the strength of a trend and potential changes in that trend. The Force Index is based on the principle that price movement must be accompanied by strong trading volume to be sustainable. The indicator measures the strength of price movement by considering both the price change and the volume of trading activity. Traders can use the Force Index to identify potential buy or sell signals in the market. For example, a buy signal may be generated when the Force Index rises above its moving average, indicating that the buying pressure is increasing. Conversely, a sell signal may be generated when the Force Index falls below its moving average, indicating increasing selling pressure. |
