Concept
Force Index
Force Index is a Volume & Order Flow concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.
Elder
Top Force Index indicators
3 total
What is the Force Index?
The Force Index is Alexander Elder's volume-weighted momentum measure, introduced in his 1993 book Trading for a Living. Each bar's raw value is the change in close from the prior bar multiplied by volume, so one number captures direction, the size of the move, and the participation behind it. A strong advance on heavy volume prints a large positive value; a drift on thin volume barely registers.
The raw series is too jagged to read, so Elder smoothed it with an EMA: a 2-period EMA for short-term entry timing and a 13-period EMA for tracking intermediate-term buying and selling pressure. Readings above zero say bulls dominated recent bars, readings below zero say bears did, and zero-line crosses and divergences against price are the standard signals.
How traders use it
- Pullback entries within a trend: Elder's classic tactic buys when the 2-period Force Index dips below zero in an uptrend (a brief pause in buying pressure) and shorts pops above zero in a downtrend, with a separate trend filter deciding direction.
- Divergence: price printing a lower low while the 13-period Force Index makes a higher low signals fading selling force, a standard bullish divergence read that Elder emphasized.
- Breakout validation: a breakout accompanied by a multi-week extreme in the Force Index shows volume-backed conviction, while one on a modest reading earns more skepticism.
Related concepts · Cumulative flow lines
Concept family
Volume & Order Flow
87 concepts mapped · 62 in the Library
Force Index FAQ
What is the difference between the Force Index and OBV?
OBV is cumulative: it adds or subtracts each bar's whole volume based only on close direction and keeps a running total. The Force Index is per-bar: the close-to-close change multiplied by volume, then smoothed with an EMA, so the size of each move matters and the line oscillates around zero rather than tracking a running balance.
Which Force Index settings did Elder recommend?
Elder used a 2-period EMA of the raw series for short-term timing, spotting brief pauses in pressure inside an established trend, and a 13-period EMA for the intermediate balance between buyers and sellers. The raw one-bar series is rarely plotted on its own because it is too erratic to read comfortably.
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