Technical Indicators

Force Index (FRC)

Purpose

The Force Index indicator invented by Alexander Elder measures the power behind every price move based on their three essential elements, e.g., direction, extent and volume. The oscillator fluctuates around the zero, i.e., a point of a relative balance between power shifts.


Usage

The Force Index allows to identify the reinforcement of different time scale trends:

  • The indicator should be made more sensitive by decreasing its period for short trends.
  • The indicator should be smoothed by increasing its period for longer trends.


The Force Index may strongly imply a trend change:

  • Break-down of an uptrend when the indicator's value is changing from positive to negative and price and indicator show divergence.
  • Break-down of a downtrend when the indicator's value is changing from negative to positive and price and indicator show convergence.


Together with a trend-following indicator the Force Index can help identify trend corrections:

  • An uptrend correction when the indicator bounces off the low.
  • A downtrend correction when the indicator slides from a pike.



Calculation

Force Index(1) = {Close (current period) - Close (prior period)} x Volume
Force Index(13) = 13-period EMA of Force Index(1)


Deposit methods:


Live chat

Our consultants will answer all your questions live



© IFC Markets Corp. 2006-2012 IFC Markets is a Forex (Foreign Exchange Market) broker providing services in spot Forex for both individual and corporative clients. Other services include Forex Education and Forex Training.
The information and services described on this site are not directed at and are not available for residents of the USA


Risk warning: Relatively small rate changes of trading instruments (currency pair, CFDs, etc.) when fulfilling trading operations on high leverage can cause significant changes to the customer trading account (proportionally to the leverage used). At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy.

Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.


Anti-Money Laundering Policy: The Anti-Money Laundering Policy follows the standards of the Anti-Money Laundering and Combating Terrorism Financing (hereinafter collectively referred to as “AML”) procedures within the IFCM Group.
In any country/jurisdiction where the requirements of applicable anti-money laundering laws and regulations act to establish higher standards, IFCM Group must meet those standards.
IFCM Group is committed to examining its anti-money laundering strategies, goals and objectives on an ongoing basis and to maintaining an effective AML Policy for the IFCM Group’s business. The AML Policy in PDF