The Force Index was developed by Alexander Elder and published in his book “Trading for a Living.” Elder’s insight: pure price-based momentum oscillators miss something important – whether the move has volume behind it. The Force Index combines price change with volume to produce a momentum reading weighted by participation. In forex (which uses tick volume as a proxy) the Force Index is most useful as a divergence detector.
In trending pairs around news events or session opens, Force Index divergence catches exhaustion that pure-price oscillators miss. It’s the indicator I add when I want to know whether a breakout has genuine participation or whether it’s running on thin volume.
What is the Force Index?
The Force Index is calculated by multiplying the price change (close minus previous close) by the volume of that bar. The raw output is then typically smoothed with an EMA to reduce noise. Elder’s original setting was a 13-period EMA of the raw Force Index.
In forex, “volume” is tick volume – the number of price ticks during the bar. While not identical to true exchange volume, tick volume is a reliable proxy on liquid pairs (EURUSD, GBPUSD, USDJPY, gold). The correlation between tick volume and actual interbank volume on liquid forex pairs is high enough that Force Index works as designed.
The result is a single line oscillating around zero with no fixed bounds. Above zero = bullish momentum with participation; below zero = bearish momentum with participation.
How Force Index Works on MT4
Force Index isn’t built into MT4’s default oscillator list. Install our custom version – see install custom indicators on MT4.
Three signals matter:
The zero-line cross signals trend confirmation. Force Index above zero with rising price = healthy trend. Below zero with falling price = healthy downtrend. Mismatch between price direction and Force Index sign = early warning.
Divergence is where Force Index shines. Price makes higher highs while Force Index makes lower highs (bearish divergence) – participation is fading even as price extends. Same pattern inverted for bullish divergence. In my testing, Force Index divergence on H4 has a higher win rate than RSI divergence on the same charts because volume-context catches exhaustion before pure-price momentum does.
Spike extremes (very large positive or negative readings) indicate exhaustion blow-offs. Counter-intuitively, the largest Force Index spikes often mark short-term reversals because they represent capitulation moves.
Key Features
- Volume-weighted momentum (tick volume in forex)
- Centred on zero, no fixed OB/OS levels
- Particularly effective for divergence detection
- Non-repainting once candles close
- Configurable smoothing period (default 13)
- Works best on liquid forex pairs and gold
Best Settings for Force Index
| Parameter | Short-Term | Default (Elder) | Long-Term |
|---|---|---|---|
| EMA Period | 2 | 13 | 40 |
| Reference | Zero | Zero | Zero |
Elder’s 13-period EMA is what most traders use. The 2-period is a faster variant for short-term entries but produces too many false signals on its own. The 40-period is a slower variant for swing trading.
Recommended starting point: 13-period EMA on H1 and H4 for divergence detection.
Pros and Cons
| Pros | Cons |
|---|---|
| Volume-weighted – catches participation behind price moves | Tick volume in forex is a proxy, not true exchange volume |
| Divergence signals are particularly reliable on breakouts | Less effective on illiquid exotic pairs where tick volume diverges from real volume |
| Non-repainting, suitable for backtesting | Not built into MT4 by default – requires manual install |
| Works on forex, gold, indices – any market with reliable volume data | No fixed OB/OS levels – requires per-chart calibration |
How to Install Force Index on MT4
Step 1: Download Force Index.ex4 (link below).
Step 2: Drop into MQL4/Indicators via File > Open Data Folder.
Step 3: Refresh Navigator (Ctrl+N), drag Force Index onto chart.
Step 4: Set EMA Period to 13. Add level at 0. Click OK.
Trading Strategy: Force Index Divergence
Setup: Force Index(13) with zero level on H4 EURUSD or GBPUSD.
Bearish Divergence (Sell Signal):
1. Price makes a higher high
2. Force Index makes a LOWER high at the same swing
3. Wait for the next H4 candle to close bearish
4. Enter short on the close of the confirmation candle
Bullish Divergence (Buy Signal):
1. Price makes a lower low
2. Force Index makes a HIGHER low
3. Wait for next H4 bullish close
4. Enter long on confirmation
Stop Loss: Beyond the recent swing extreme (50-100 pips on H4).
Take Profit: 1:2 R:R or trail by structure.
Force Index divergence is more reliable than RSI divergence on H4 in my testing because volume context catches exhaustion that pure-price momentum misses. Use it when you suspect a trend is running out of fuel.
Frequently Asked Questions
Is the Force Index indicator free?
Yes. Custom version available below.
Does Force Index repaint?
No. Locks in once the candle closes.
Does Force Index work in forex with tick volume?
Yes, on liquid pairs. Tick volume is a reliable proxy for actual volume on EURUSD, GBPUSD, USDJPY, gold, and major crosses. Less reliable on exotic pairs.
What’s the best Force Index setting?
Elder’s default 13-period EMA on H4 is the best general-purpose setting. Faster (2) generates too many false signals; slower (40) lags too much.
Force Index vs OBV?
Both are volume-weighted momentum tools. OBV is cumulative; Force Index is bar-by-bar. Force Index is more sensitive to short-term volume changes; OBV better for long-term accumulation analysis.
Download Force Index Indicator for MT4 – Free
- Multi-timeframe display – H4 and D1 Force Index on your H1 chart
- Zero-line cross alerts – popup, email, push notifications
- Divergence detection – automatic divergence drawing on the chart
- Customisable EMA period
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 14 KB
Version: 2.0
Last updated: April 2026
Download the Force Index Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Force Index Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Force Index Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for day and swing trading
- The exact divergence rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
Download the Force Index Indicator – Free Instant Access
No payment. No catch. Enter your email below and the Force Index Indicator file lands in your inbox within 60 seconds. Here’s everything you get:
- The non-repainting Force Index Indicator file (.ex4) – install in 30 seconds
- Step-by-step installation guide with chart screenshots
- Best-performing settings for scalping, day trading, and swing trading
- The exact entry and exit rules Dom uses in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.3/5
| Category | Rating |
|---|---|
| Accuracy | 4.4/5 |
| Ease of Use | 4.1/5 |
| Features | 4.2/5 |
| Value | 4.5/5 |
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