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Home / Forex Indicators / Force Index
 
This index created by Alexander Elder calculates the Bulls Power at every rise and fall. In the market of forex trading ,the Force Index links the main parts of market data: price trend and decreases, the volumes of transactions.
   
It's better to approximate this index in forex trading with the help of moving average. Approximation with the help a short moving average contributes to finding the best opportunity to open and close positions though this index can be also used as it is.

There's an advice to use two intervals in a short moving average.


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If the approximations is made with long moving average (period 13), the index demonstrates the tendencies and their fluctuations.
 
 
In forex trading , it's worth purchasing when the forces fall below zero (become minus) - when the indicator increases tendency.

The force index demonstrates the going on of the increasing tendency when it increases to the new high.

 

The signal to sell in forex trading occurs if the index becomes positive during the decreasing tendency.
The force index demonstrates the Bears Power and going on of the decreasing tendency if the index falls to the new bottom.

In currency trading, we advise you to test this tool in demo account trading before using it in real account.

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