How to interpret FORCE INDEX

Force index (FI) is used to measure the force of bears and bulls on a trending market. This indicator is based on currency price, direction and trade volumes. FI may be smoothed by a short-term (2-10 periods) or long-term (13 periods) MA (blue line on the chart).

How to interpret:

Buy signals:

• Force index is printing new highs on a rising trend (trend continuation)
• Forces become negative (fall below zero) in the period of a rising trend (buy on dips)
• Force index rises above zero on a downward trend
• Force index crosses the MA bottom up
• Divergences (price prints lower lows when FI makes higher lows)

Sell signals:

• Force index is printing new lows on a downward trend (trend continuation)
• Forces become positive (rise above zero) in the period of a downward trend (sell on pullbacks)
• Force index drops below zero on a rising trend
• Force index crosses the MA top down
• Divergences (price prints higher highs when FI makes lower highs)

How to interpret FORCE INDEX