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Soultrader

"Force Index Indicator" for Tradestation

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This indicator is based off of Dr. Alexander's famous book, "Trading For A Living." Known as the force index, it was written by the Tradestation community.

 

(description provided by Torero)

 

Volume * (Close - Close[1])

This is similar to momentum indicator except it adds volume as an equal importance. Basically, the difference of the close of yesterday (or bar) and the close of today multiply by today's volume (interchange day to bar or vice versa). So the movement of the price with that volume tells how much impact volume had in moving price bar to bar. The bigger the movement, the higher reading the indicator will show, provided the volume remains the same. If the close stagnates, the indicators will show a small reading.

 

The divergence happens when either volume dries up while the price is moving in a steady pace or price difference was miniscule while volume remains the same.

 

Screenshots

FORCE-INDEX.ELD

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As I mentioned previously, this indicator works best in the early opening hours, especially within 30 minutes to 1 hour of opening. Why? More volume. When you have more volume, there is more this indicator shines in detecting divergence.

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Hi Soultrader,

Thanks for this indicator - I'm currently looking at triple screen as a swing trading solution and the force index is useful. One question however, when I click install the ELD doesn't seem to install in TS (instead I am re-directed to the forum homepage?) - Can we supply a link to the ELD file?

Many thanks

Daniel

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Hi Soultrader,

 

I just found your indicator...thanks!

Quick question, I've been trying to apply Elder's Force Index to forex but it doesn't seem to work at Tradestation... perhaps because Tradestation doesn't provide "volume" for forex?

 

Still I found that Force Index works fine for forex at MetaTrader4. Also, Elder shows a chart for euro/dollar in his book Entries and Exits (page 232) with force index in it. I wonder how Metatrader4 and Elder are able to get "volume" readings for their indicators for forex.

 

Any ideas will be greatly appreciated.

Thanks,

 

Will

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Hi Soultrader,

I wonder how Metatrader4 and Elder are able to get "volume" readings for their indicators for forex.

Will,

 

MT4 is using "tick" volume in forex - which is nothing more than bid/ask updates, IMHO, not actual traded volume.

 

-fs

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If you wish to use 'tick volume' with this indicator (or any other involving volume where the exchange traded volume is not available) with Forex under TS, just set the Format Symbol, Volume setting to 'Tick count' instead of 'Trade Vol', which is probably what MT4 is doing by default.

5aa70e6ec4462_Tickvol2008-06-01_135915.gif.edeeb629e5b18d3114679c70b843921b.gif

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hi

who can program an auto trader for me.

ema 5 ema 20 sma10 and rsi 21.

when the 5 ema cross the 20 ema up trend buy with stoploss 15. when 10 sma cross 20 ema buy for up trend stop loss 15. close trade when 10 ema cross 20 ema (close both) the rsi must be 50 or above for buy and 50 or below for sell trigger.

I also want the syatem to be programmed in a way that i can use it for buy and sell and i can change the settings if needed.

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Hi Soultrader,

 

I just found your indicator...thanks!

Quick question, I've been trying to apply Elder's Force Index to forex but it doesn't seem to work at Tradestation... perhaps because Tradestation doesn't provide "volume" for forex?

 

Still I found that Force Index works fine for forex at MetaTrader4. Also, Elder shows a chart for euro/dollar in his book Entries and Exits (page 232) with force index in it. I wonder how Metatrader4 and Elder are able to get "volume" readings for their indicators for forex.

 

Any ideas will be greatly appreciated.

Thanks,

 

Will

 

Hi Will,

 

Unfortunately I dont think I can help you with this as I do not use this indicator. A thing that crossed my mind is that if volume is required to calculate this indicator, perhaps data vendors who use tick volume for currencies are applying this data into the Force Index? Might be something to look into. If you are not familiar with tick volume on currencies, it is simply the number of times price changes based on the bid/ask quotes. Not an accurate measure of volume but gives you an idea as buying and selling frenzy is all the same.... traders stumbling across the boards causing bid/ask to change swiftly.

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