Force index
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The Force Index (FI) is an indicator used in technical analysis to illustrate how strong the actual buying or selling pressure is. High positive values mean there is a strong rising trend, and low values signify a strong downward trend.
The FI is calculated by multiplying the difference between the last and previous closing prices by the volume of the commodity, yielding a momentum scaled by the volume. The strength of the force is determined by a larger price change or by a larger volume.
The FI was created by Alexander Elder.
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Elder, Alexander (1993). Trading for a Living: Psychology, Trading Tactics, Money Management. Wiley. ISBN 0-4715-9224-2. {{cite book}}: Cite has empty unknown parameter: |1= (help)