This indicator is based off of Dr. Alexander's famous book, "Trading For A Living." Known as the force index, it was written by the tradestation community.

(description provided by Torero)

Volume * (Close - Close[1])
This is similar to momentum indicator except it adds volume as an equal importance. Basically, the difference of the close of yesterday (or bar) and the close of today multiply by today's volume (interchange day to bar or vice versa). So the movement of the price with that volume tells how much impact volume had in moving price bar to bar. The bigger the movement, the higher reading the indicator will show, provided the volume remains the same. If the close stagnates, the indicators will show a small reading.

The divergence happens when either volume dries up while the price is moving in a steady pace or price difference was miniscule while volume remains the same.

Screenshots

[torero]

As I mentioned previously, this indicator works best in the early opening hours, especially within 30 minutes to 1 hour of opening. Why? More volume. When you have more volume, there is more this indicator shines in detecting divergence.

[aidaweb01]

Hi Soultrader,
Thanks for this indicator - I'm currently looking at triple screen as a swing trading solution and the force index is useful. One question however, when I click install the ELD doesn't seem to install in TS (instead I am re-directed to the forum homepage?) - Can we supply a link to the ELD file?
Many thanks
Daniel

[Soultrader]

Hi Daniel,

Sorry about that... I must of forgot to attach the .EDL file. I changed the attachment on the first post so please check it out. Thanks

[aidaweb01]

Much appreciated - and great website!
Have spent many hours looking through the content and very impressed.

[Soultrader]

Hi Daniel,

Im sooo sorry. I attached the wrong file. Please check the attachment again. Also, thank you for the compliments

James

[aidaweb01]

Excellent - thanks very much.

[Will]

Hi Soultrader,

I just found your indicator...thanks!
Quick question, I've been trying to apply Elder's Force Index to forex but it doesn't seem to work at tradestation... perhaps because tradestation doesn't provide "volume" for forex?

Still I found that Force Index works fine for forex at MetaTrader4. Also, Elder shows a chart for euro/dollar in his book Entries and Exits (page 232) with force index in it. I wonder how Metatrader4 and Elder are able to get "volume" readings for their indicators for forex.

Any ideas will be greatly appreciated.
Thanks,

Will