ForceIndexReturn value for the ForceIndex technical indicator for the price selected.
This indicator need volume values.
Syntax:
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1 |
ForceIndex(price) |
Calculation:
Force Index=(today’s close-yesterday’s close)*Volume.
Interpretation:
This indicator obtained using the difference between closing prices and voulmes allows you to measure strength of buying and selling. You can apply a Wilder moving average to smooth the indicator. When the indicator is above the 0 level buyers rule over sellers and when the indicator is below the 0 level sellers dominate buyers. It also gives good divergence signals.
A Bullish divergence occurs when the stock price makes new lows while the indicator fails to make new lows.
A Bearish divergence occurs when the stock price makes new highs while the indicator fails to make new highs.
