Stage Analysis - Trading and Investing using Stan Weinstein's Four Stage Breakout method

Full Version: How to create the Cumulative Force Index indicator
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I get asked a lot about the volume indicator that I use at the bottom of my charts. It is a custom volume indicator adapted from Elder's Force Index, and I use it so that I can have a clearer read of the volume data.

For those that are using the free ProRealtime online chart software, I've created the code for it and attached below. Also attached are the screenshots of the settings files and the ProRealtime .itf file if you want to import it in directly:

Code:
ForceIndex1 = (Close-DClose(1))*Volume

ForceIndex2 = ExponentialAverage[10](ForceIndex1)

CumulativeForceIndex = cumsum(ForceIndex2)

RETURN CumulativeForceIndex

This code creates the cumulative force index, and then you need to add a 10 simple MA to it, and finally Add a new colour zone to fill it. Attached are the screenshots of the settings and the result on the weekly chart at the bottom.

[attachment=518]
Code for Amibroker
I am using 48 periods on daily charts to equate to 10 weeks.
+++
// Cummulative force index

ForceIndex1 = (Close - Ref(Close,-1)) * Volume;
ForceIndexEMA = EMA(ForceIndex1,48);
CummulativeForceIndex = Sum(ForceIndexEMA,48);

Plot (ForceIndexEMA,"ForceIndexEMA", colorAqua,styleLine);
Plot(CummulativeForceIndex,"CummulativeForceIndex", colorRed, styleLine);
+++
(03-20-2013, 03:37 PM)isatrader Wrote: [ -> ]I get asked a lot about the volume indicator that I use at the bottom of my charts. It is a custom volume indicator adapted from Elder's Force Index, and I use it so that I can have a clearer read of the volume data.

For those that are using the free ProRealtime online chart software, I've created the code for it and attached below. Also attached are the screenshots of the settings files and the ProRealtime .itf file if you want to import it in directly:

Code:
ForceIndex1 = (Close-DClose(1))*Volume

ForceIndex2 = ExponentialAverage[10](ForceIndex1)

CumulativeForceIndex = cumsum(ForceIndex2)

RETURN CumulativeForceIndex

This code creates the cumulative force index, and then you need to add a 10 simple MA to it, and finally Add a new colour zone to fill it. Attached are the screenshots of the settings and the result on the weekly chart at the bottom.

Hi Isa,
How do you create this in stockcharts.com? I can create force index 10 period but not accumulative... if you can't create, is there an alternative?
thanks,
Regards,
Ark,
(04-30-2018, 04:30 AM)arkyuan Wrote: [ -> ]Hi Isa,
How do you create this in stockcharts.com? I can create force index 10 period but not accumulative... if you can't create, is there an alternative?
thanks,
Regards,
Ark,

You can't create the cumulative in stockcharts. So I just use standard force index 2 period on those if I'm looking at the charts with it. But the standard volume indicator is all you need really, as a surge in volume on the breakout or after the breakout should be clearly visible from the other volume on the chart i.e. it should be much bigger than the previous volume - 2x is just the minimum requirement. Ideally you want to see something like 5 or more times the average volume if you are hunting A+ stocks.
(04-30-2018, 08:15 AM)isatrader Wrote: [ -> ]
(04-30-2018, 04:30 AM)arkyuan Wrote: [ -> ]Hi Isa,
How do you create this in stockcharts.com? I can create force index 10 period but not accumulative... if you can't create, is there an alternative?
thanks,
Regards,
Ark,

You can't create the cumulative in stockcharts. So I just use standard force index 2 period on those if I'm looking at the charts with it. But the standard volume indicator is all you need really, as a surge in volume on the breakout or after the breakout should be clearly visible from the other volume on the chart i.e. it should be much bigger than the previous volume - 2x is just the minimum requirement. Ideally you want to see something like 5 or more times the average volume if you are hunting A+ stocks.


ok perfect,that's what I thought too
Is using standard force index 2 period functionally the same as having the cumulative in stockcharts?
(06-06-2019, 02:14 PM)Rosler Wrote: [ -> ]Is using standard force index 2 period functionally the same as having the cumulative in stockcharts?

No it's not cumulative. You can't do it in Stockcharts. But a 13 period force index with an short term MA is quite useful.