Force Index Indicator MT4 | MT5

The Force Index (FI) is a technical analysis indicator that quantifies the strength and direction of price moves by multiplying price change by volume. It was introduced by Alexander Elder to capture the force behind each price movement, meaning how much influence the buyers or sellers exert over the market during a period (13-period by default).

Moreover, the FI is plotted as a single line in a separate subwindow, with a zero line as the midpoint for the bullish and bearish force indicator, using the following formula:

• ForceIndex[i] = Volume[i] × (MA[i] - MA[i-1])

* Where:

- MA[i] is the moving average of the applied price at bar i.

- Volume[i] is either tick or real volume depending on traders's preferences.

However, the indicator helps traders in several trading strategies such as:

1. Trend Strength: A rising Force Index above zero confirms bullish strength while falling values below zero indicate bearish strength.
2. Trend Reversals: Divergences between price and the Force Index can signal weakening momentum and possible reversals.
3. Breakout Confirmation: Strong spikes in the Force Index during consolidation breakouts confirm conviction behind the move.

Furthermore, for simple entry signals, the Force Index can generate:

• A Buy Signal: When the indicator's line crosses above the zero line and continues rising while the price breaks a recent resistance.
• A Sell Signal: When the blue line crosses below zero and declines while the price breaks a support zone.

1- On the CADCHF daily chart, using the MT5 version of the Force Index indicator, a strong move below the previous support level was confirmed by a drop of the indicator below the zero line, signaling a bearish trend and a potential sell opportunity. Following this, the Force Index oscillated around the zero line, reflecting market indecision. Price action mirrored this behavior, entering a consolidation phase.

Later, when the price broke below support again and the Force Index dropped below zero, another sell signal was confirmed, especially after a retest of the broken support level, which acted as resistance.

2- On the EUR/AUD H1 chart, the MT5 version of the Force Index confirmed a bearish trend as the indicator consistently stayed below the zero line. Each retest or drop below this level signaled potential sell opportunities.

However, when the indicator began to rise toward the zero line, it suggested a weakening bearish momentum and the possibility of a bullish divergence. A strong upward spike in the Force Index confirmed this shift, signaling the end of the downtrend and presenting a buying opportunity that traders could capitalize on.

3- On the GBP/USD M5 chart in MetaTrader 5, the Force Index fluctuated around the zero line, indicating a consolidation phase and suggesting no clear trading opportunities at that time.

Later, the price broke above a resistance level, supported by a strong bullish spike in the Force Index. This confirmed a bullish breakout and presented a buy entry. As seen on the chart, the price continued to rise, and traders who entered early could have profited from this upward move.

Furthermore, the Force Index began to weaken, signaling a loss of bullish momentum, marking a logical point to exit the trade and secure profits.