The Elder Force Index indicator is used to measure the power driving a movement in the price. It tries to highlight potential price reversals and corrections by analyzing the direction, length, and volume driving the price movement.
Configuration Options
- Period: Number of bars to use in the calculations.
- Color Selectors: Colors to use for graph elements.
- Display Axis Label: Whether to display the most recent value on the Y axis.
Formula
[EFI = (Close_{current;period} – Close_{previous;period})times Volume_{current;period} ]
[EFI_{n-period} = Moving;Average;of;n-periods;of;EFI]