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Jim,
See #16063 and #16013
Keith
--- In amibroker@xxxxxxxxxxxxxxx, "jnk1997" <jnk1997@xxxx> wrote:
> Hello, does anyone have an indicator like this, or can someone
create
> the AFL for this one (perhaps with param for the slow and fast
> settings) I think Elder used 2 and 13
>
> Thanks
> Jim
>
>
>
> The ForceIndex indicator relates price to volume by multiplying net
> change and volume.
>
> ForceIndex is calculated using the following equation:
>
> ForceIndex = Volume(today) * (Close(this period) - Close(last
> period))
>
> ForceIndex is typically presented as two smoothed averages (slow)
and
> fast) to reduce the likelihood of false signals.
>
>
>
>
> Interpretation:
>
> ForceIndex is used by some investors as a running total of where
> money is flowing. Because this indicator multiplies price movement
in
> a period by the volume of that period, the value of ForceIndex will
> change the most when net change is accompanied by higher relative
> volume. Investor can use this index to both (a) compare current
price
> movements to past ones and (b) evaluate the current trend.
>
> The periods used are a moving average of the ForceIndex values,
which
> reduces choppiness. Generally, investors use periods which match
the
> length of the trends in which they are studying. The longer-average
> will be the intermediate or longer-term trend and the shorter-
average
> will be a shorter-term trend. Some conventional interpretations
> follow:
>
> One interpretation is to look for a confirmation or divergence
> between ForceIndex and the price. When ForceIndex moves up with
price
> increases or down with price decreases, it can indicate that the
> current trend is has momentum. When ForceIndex diverges from price,
> it can indicate that the trend may change.
>
> Another interpretation is to receive signals based on a crossover
of
> the two lines. When the slow line crosses above the slow line and
> they are both increasing, it can be considered a confirmation of an
> uptrend. Conversely, when the fast line crosses below the slow line
> and they are both decreasing, it can be seen as confirmation of a
> downtrend. When a crossover occurs when the lines are going in
> opposite directions, it can indicate a trend reversal.
>
> Some traders seek to eliminate some false signals by using only the
> signals which correspond to the direction of the intermediate to
long
> term trends.
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