Classic Force Index Indicator
With Amibroker AFL and Amibroker Data Feeder, traders can develop and analyze the Classic Force Index Indicator. This indicator measures the strength of price movements and can help traders identify potential reversal or continuation signals, providing valuable insights into market dynamics.
/*Made by Thomas Youssef, 2005-01-15
Alexander Elder´s classic force index indicator
I use them on swedish stocks, weekly.
The rules are easy:
If the indicator is below zero AND there is a bullish divergence, then go LONG
If the indicator is above zero AND there is a bearish divergence, then go SHORT
Works well when you have a head and shoulder or a triangular formation against the zeroline.
*/
_SECTION_BEGIN("Force index");
FI=EMA(((C-Ref(C,-1))*V),13);
Plot(FI,"FI",12,5);
Plot(0,"ZERO LINE",colorWhite,styleThick);
_SECTION_END();