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To: BW who wrote (25681)8/18/2005 2:10:51 PM
From: Bucky Katt  Read Replies (1) | Respond to of 48461
 
This should do it> Developed by Dr Alexander Elder, the Force index combines price movements and volume to measure the strength of bulls and bears in the market. The raw index is rather erratic and better results are achieved by smoothing with a 2-day or 13-day exponential moving average (EMA).

* The 2-day EMA of Force is used to track the strength of buyers and sellers in the short term;
* The 13-day EMA of Force measures the strength of bulls and bears in intermediate cycles.

If the Force index is above zero it signals that the bulls are in control. Negative Force index signals that the bears are in control. If the index whipsaws around zero it signals that neither side has control and no strong trend exists.

* The higher the positive reading on the Force index, the stronger is the bulls' power.
* Deep negative values signal that the bears are very strong.
* If Force index flattens out it indicates that either (a) volumes are falling or (b) large volumes have failed to significantly move prices. Both are likely to precede a reversal.