Force Indicator: Volume-Weighted Change in a Moving Average
Summary
The document describes a Force indicator calculated from trading volume and the change in a moving average of closing prices. Its inputs are close, volume, and a configurable period. The indicator multiplies volume by the difference between the current period’s moving average and its previous value, so its sign reflects the direction of that average’s change and its magnitude also depends on volume.
The page gives the formula but does not explain how to interpret thresholds, choose a period, or turn readings into entry and exit rules. It provides no performance tests or comparison with other indicators, and a chart is mentioned without substantive analysis. The formula is therefore a starting point for studying a volume-weighted trend measure, not evidence that it predicts returns or works as a standalone strategy.
Key ideas
- The indicator multiplies volume by the change in a closing-price moving average.
- Its inputs are closing prices, volume, and a selected lookback period.
- A positive or negative reading follows the direction of the moving average’s change.
- The document gives no trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.