What it is
Alexander Elder introduced the Force Index to combine three things in one number: the direction of the move, its size and the volume behind it. A big up candle on heavy volume gives a large positive value; a small up candle on thin volume gives a small one.
The raw values jump around a lot, so they are smoothed. The 13 period version shows the medium-term balance of power. A very short 2 period version is used to spot pull-backs inside a trend.
How it is calculated
1. For each candle, raw force = (close minus previous close) multiplied by the candle's volume. 2. Smooth the raw force with an exponential moving average over 13 candles (the smoothing setting). 3. The result moves above and below zero.
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Smoothing | 13 | 1 to 100 | Length of the average applied to raw force. 13 shows the trend in buying or selling power; 2 shows short pull-backs; 1 shows the raw, unsmoothed value. |
How to read it
How to trade it
- 1
Use the 13 period Force Index on a 4 hour gold chart to set direction: above zero, look only for buys.
- 2
Add a second Force Index with smoothing 2 on a 1 hour chart. When it dips below zero, the pull-back has started.
- 3
Buy when price breaks above the high of the candle that made the dip, with the stop below that candle's low, often 8 to 12 points on 1 hour gold.
- 4
Target the last swing high first, then 2 times the stop.
- 5
Do the reverse on US30 in a downtrend: sell when the 2 period version pops above zero and price breaks the low.
A pull-back buy is proved wrong if price closes below the low of the dip candle, or the 13 period Force Index crosses below zero, which means the larger balance of power has switched.
WickSpeak runs in your browser with nothing to install. When you add the Force Index, it writes a plain-English reading on the live candle: what the indicator is, what it is doing right now, how to trade it and what would prove that reading wrong. It says which side is doing the pushing, whether the push is growing or fading, and whether any spike came from one unusual candle.
In Playbook, our no-code strategy builder, the Force Index can be a condition in a play. It can test whether the Force Index: crosses above zero; crosses below zero; is above zero; is below zero; is rising; is falling. Each condition can run on any of 12 timeframes from 1 minute to weekly, combined with up to 11 others, and the play can be backtested on past candles with your own costs and turned into alerts on screen, by email or by phone push.
Best markets and timeframes
Best where volume is meaningful: index futures, crypto and liquid stocks. On gold and forex CFDs it uses tick volume, which is usually adequate on 1 hour to daily charts.
Common mistakes
- Comparing Force Index values between markets; the size depends on price and volume units.
- Using the 2 period version on its own, which flips above and below zero constantly.
- Reading one news spike as a lasting change in who controls the market.
Works well with
Questions traders ask
What is the best setting for the Force Index?
Elder used 13 for the trend and 2 for timing entries. Most traders keep 13 as the default and add a short one only for pull-backs.
What does a positive Force Index mean?
It means rising candles with volume have outweighed falling candles over the smoothing window. Buyers are applying more force than sellers.
How is the Force Index different from On Balance Volume?
On Balance Volume only adds or subtracts volume depending on whether the close went up or down. The Force Index also uses the size of the move, so a big move counts for more than a small one.
Can I use the Force Index on forex?
Yes, with tick volume. It is less precise than with real exchange volume, so combine it with price levels and trend direction.