The Force Index by John A. Sarkett
ARTICLE SYNOPSIS ...The Force Index by John A. Sarkett
Here's a little-known indicator that combines price change and volume to create a short-term and an intermediate-term trading tool.
Like ocean waves, prices have an ebb and a flow. Once in a while, however, a huge shift in price and volume hits the market with the impact of a tidal wave, setting the stage for follow-through price movement. One particular indicator, the force index, measures and depicts this major event more vividly than any other. Developed by Alexander Elder, it is presented at length in his latest book, Trading for a Living.
The force i...