What is Force Index? Profitable Forex Trading Indicators

What is Force Index?
      Force Index is one of the technical Indicators which is used to measures the Bulls Power at each increase and decrease. It connects the price trend, price drops, Volume and Transactions. It is better to estimate the trend with the help of moving average. Short Moving Average is helps to contributes to find the best chance to open and close position. If the approximations are prepared with long moving average like period 13, then the index shows the trends and their changes.

• It provides buy signal when the forces become minus in the period of indicator up trend.
• When the force index indicator signals provides the persistence of uptrend then market increases to the new high.
• It provides sell signal when the forces become positive in the period of indicator down trend.
• When the force index indicator signals provides the persistence of downtrend then market decreases to the new low.
• Force indicator stays on one level, which trend is going to vary soon.

Calculation:

          FORCE INDEX (i) = VOLUME (i) * ((MA (ApPRICE, N, i) - MA (ApPRICE, N, i-1))

FORCE INDEX (i) - Current bar force Index.
VOLUME (i) - Current bar volume.
MA (ApPRICE, N, i) - Moving Average of the current bar for N period.
ApPRICE - applied price.
N - Smoothing period.
MA (ApPRICE, N, i-1) - Previous bar moving average.
Moving Averages are Simple, Exponential, Weighted or Smoothed.