dear friends, Force Index aik aisa technical indicator ha jis kay zariay price moment ki strength ko measure kia jata ha, indicator ko Alexander Elder na develop kia, yeh aisa oscillator ha jo upward trend ki bullish force aur downward trend ki bearish force ko janchta ha,
Details of Force Index indicator:
Ye oscillator hamain pairs ki price movement aur volume ko use kar kay inki calculations ki basis per trend ki strength aur trend kay reversal points ka batata hay, kay is trend kay turning points main kitna positive aur negative change expected hay, is main hmain market kay related three main cheezain pata honi chaian jin ma price change ki direction, price change ka magnitude aur trading volume hain,
How to calculate Force Index Indicator:
force index maloom karnay kay liay hum current close price aur previous close price ka difference maloom kar kay volume sa multiply kartay hain, iski effectivity kay liye exponential moving average kay sath isko formulate karty hain matlab last kuch periods ki exponential moving average lay kar, isko volume ka sath multiply karty hain, default 13 period select hotay hain, jin ko ziada bhi kia ja sakta hay, force index short time frames ma itna effective sabit nhi hota, jab kay longer time frames ma behtar results daita ha, Iska formula ye hota hay,
Force Index = n period EMA x volume
Characteristics of Force Index indicator:
Force index kay barhnay ki waja say EMA positively sloped hota hay, aur increase hota hay, jab EMA neutral ya less than zero ho to trade say exit ho jana chaiay, jab aik candle ki closing price dusri candle sa high ho to hm keh saktay hain k is move kay peechay force positive ya bullish ha aur agr current candle previous candle sa below close hoti ha to iski moving force negative ya bearish ha, is tarah agr in current candles ki length previous candles sa kam high ya low ho gi to un par small force act kar rahi ho gi aur agr candles ki length ma ziada fark ho ga to ye ziada force ki waja sa ho ga,
How to trade with this indicator:
Ye oscillator zero say above aur below move karta rehta ha, jab ye zero sy uper hota hai to iska matlab hai kay market uptrend ma hai aur jab ye value zero sy below ho to ye volume down trend ma hota ha, ager price zero say up ho to ye uptrend jab keh below zero down trend ko show karti hay. Ager price aur index main ziada phaila ho to iska matlab hay keh trend change ho raha hay, is index ki effectivity higher time frames main ziada hoti hay kiun kay higher periods use karnay say hamain kam signals milty hain jin main change itnay jaldi nahi hoti, jab kay lower time frames main kam periods per ziada signals milnay ki waja say in main say 50% signals false hotay hain jin per loss bhi ho jata hay.
Details of Force Index indicator:
Ye oscillator hamain pairs ki price movement aur volume ko use kar kay inki calculations ki basis per trend ki strength aur trend kay reversal points ka batata hay, kay is trend kay turning points main kitna positive aur negative change expected hay, is main hmain market kay related three main cheezain pata honi chaian jin ma price change ki direction, price change ka magnitude aur trading volume hain,
How to calculate Force Index Indicator:
force index maloom karnay kay liay hum current close price aur previous close price ka difference maloom kar kay volume sa multiply kartay hain, iski effectivity kay liye exponential moving average kay sath isko formulate karty hain matlab last kuch periods ki exponential moving average lay kar, isko volume ka sath multiply karty hain, default 13 period select hotay hain, jin ko ziada bhi kia ja sakta hay, force index short time frames ma itna effective sabit nhi hota, jab kay longer time frames ma behtar results daita ha, Iska formula ye hota hay,
Force Index = n period EMA x volume
Characteristics of Force Index indicator:
Force index kay barhnay ki waja say EMA positively sloped hota hay, aur increase hota hay, jab EMA neutral ya less than zero ho to trade say exit ho jana chaiay, jab aik candle ki closing price dusri candle sa high ho to hm keh saktay hain k is move kay peechay force positive ya bullish ha aur agr current candle previous candle sa below close hoti ha to iski moving force negative ya bearish ha, is tarah agr in current candles ki length previous candles sa kam high ya low ho gi to un par small force act kar rahi ho gi aur agr candles ki length ma ziada fark ho ga to ye ziada force ki waja sa ho ga,
How to trade with this indicator:
Ye oscillator zero say above aur below move karta rehta ha, jab ye zero sy uper hota hai to iska matlab hai kay market uptrend ma hai aur jab ye value zero sy below ho to ye volume down trend ma hota ha, ager price zero say up ho to ye uptrend jab keh below zero down trend ko show karti hay. Ager price aur index main ziada phaila ho to iska matlab hay keh trend change ho raha hay, is index ki effectivity higher time frames main ziada hoti hay kiun kay higher periods use karnay say hamain kam signals milty hain jin main change itnay jaldi nahi hoti, jab kay lower time frames main kam periods per ziada signals milnay ki waja say in main say 50% signals false hotay hain jin per loss bhi ho jata hay.