Understanding the Force Index Indicator
The Force Index Indicator, developed by Alexander Elder, uses price change in combination with volume to identify the strength of a price movement.
Retracement Screens - Using the Force Index Indicator
RUN IN STOCK SCREENER
(24)
Look for minor price retracements in strong trends, using the Force Index Indicator
Long
Technical AnalysisDay TradingSwing TradingPosition TradingPull backs / Retracements
Shared by user chartmill - 4 years ago
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The Force Index, screening options and a trading strategy
In this video i’ll show the screening possibilities regarding the Force Index Indicator in ChartMill and a trading strategy whereby this indicator is used both as a trend indicator but also as a buy or sell warning signal.
Stock Screener Settings
Volume Increase: Volume More Than Previous Volume
Increased volume supports the rebound
Exchange: US Only
suggested market, to be adjusted to your own preference.
Price VS SMA: Price Below SMA(5)
Minor price drop
Average Volume: 50 SMA > 300K
This filters for stocks with a minimum average daily volume of at least 300K. This filter ensures liquidity.
Price: Above 5
suggested minimum price, to be adjusted to your own preference.
Price VS SMA: Price Above SMA(200)
Long term trend positive
Force Index: Force(14) Above 0
Trend positive
Today>=0%
first sign of a rebound after decline in stock price
Chart Settings
5SMA, 10SMA and 20SMA + Force Index (2), Force Index (14) and Force Index (100)
Regional Run
Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.