Elder force index
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Indicator

Elder force index

The force behind a move: the change of the close times the volume, smoothed, so a large move on heavy volume counts more than the same move on little volume.

VolumeOwn pane1 inputEFI

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How it is calculated

A bar's force is (close minus previous close) times volume (Elder 1993). The line is an EMA of the force over the length, seeded with the plain mean of its first values like every EMA in this catalogue. The first force needs a previous close, so the first value is at bar length.

Reference: Elder force index (Elder 1993)

How to read it

Above zero buyers have the upper hand, below zero sellers. Elder used a short length of 2 to time entries and 13 for the trend. The scale is price change times volume, so it cannot be compared across markets; on forex the volume is tick volume.

In a strategy

Buying a pullback in an uptrend: while ctx.ind("efi", length=13) is above zero, enter long when ctx.ind("efi", length=2) dips below zero.

Inputs

InputTypeDefaultRange or choices
LengthlengthWhole number13min 1, max 5000

What it draws

LineDrawn as
EFILine

Guide lines at 0.

Used in

No strategy template reads it yet.

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