LEARN FORCE INDEX IN 3 MINUTES ——BLOCKCHAIN 101

SuperEx Academy is the world’s first online academy to offer comprehensive education on crypto-native indicators. It features the most extensive technical indicator tutorials and is the most detailed online learning platform for market technical analysis. Here, you’ll find hundreds of courses on commonly used indicators, along with nearly every known crypto-native indicator tutorial.

When you dive into crypto trading, you’ll quickly notice that price alone doesn’t tell the full story. Bitcoin can rise sharply, but without volume support, the move might fade fast. On the flip side, altcoins sometimes explode with both price and volume in sync — that’s when trends feel unstoppable.

This is where the Force Index (FI) comes in. Created by legendary trader Alexander Elder, it’s a momentum oscillator that blends price change and volume into one simple indicator. In the fast-paced world of crypto, Force Index gives you a clear lens to see whether bulls or bears truly control the market.

In just 3 minutes, you’ll learn how Force Index works, why it matters in crypto trading, and how to apply it to your Bitcoin, Ethereum, or DeFi trades.

 

What Is the Force Index?

At its core, the Force Index is built on a simple but powerful logic: Price movement × Volume = Market Force

  • If the price rises with strong volume, the bulls are in control.
  • If the price drops with heavy volume, the bears dominate.
  • If price moves without volume, the “force” is weak and less reliable.

This formula makes the Force Index different from indicators like RSI or MACD that focus mainly on price. It directly answers a key question every crypto trader asks:“Is this move real, or just noise?”

How to Calculate Force Index (Without Overcomplication)

The Force Index formula is: FI = (Close Price Today – Close Price Yesterday) × Volume

That’s it.

  • A positive value means upward pressure (bullish).
  • A negative value means downward pressure (bearish).
  • The larger the number, the stronger the “force” behind the move.

Most trading platforms (like TradingView or SuperEx charts) already have Force Index built-in, so you don’t need to calculate manually. Still, knowing the formula helps you trust the signal.

How to Read Force Index in Crypto Trading

Force Index is often smoothed with an EMA (Exponential Moving Average) to reduce noise. Elder himself recommended two settings:

  • Short-term (2-day EMA) → Captures quick bursts of momentum (great for day traders or scalpers).
  • Long-term (13-day EMA) → Filters out short-term noise, showing trend strength (better for swing or position traders).

Here’s how traders usually interpret it:

  1. Above Zero Line (Positive FI) → Bulls have momentum.
  2. Below Zero Line (Negative FI) → Bears dominate.
  3. Crossing Zero → Possible shift in trend.
  4. Divergence → If price makes new highs but FI doesn’t, it signals weakening momentum.

Force Index in Action: Crypto Market Examples

1. Bitcoin Bull Run Example

Imagine BTC jumps from $110,000 → $11,500 on massive trading volume. The FI value spikes positive, confirming real buying force. That’s a green light to ride the momentum.

2. Ethereum False Breakout

ETH breaks resistance at $4,000, but volume is weak. FI barely moves positive. Traders using Force Index would be cautious — a possible bull trap.

3. Altcoin Crash

An altcoin like SOL drops 15% in a day with record-high volume. FI plunges deep negative, signaling panic selling and bear dominance. This could mean “don’t try to catch the knife” unless FI starts to recover.

Limitations and Risks

Like all indicators, Force Index isn’t perfect:

  • Whale Influence: In low-liquidity altcoins, one whale trade can distort FI signals.
  • False Signals in Sideways Markets: In flat ranges, FI flips around zero constantly, giving noise.
  • Needs Context: FI works best when combined with trendlines, support/resistance, or other indicators.

Learn Force Index in 3 Minutes: The Takeaway

Let’s wrap it up into a quick checklist:

  • FI = (Price Change × Volume) → measures market force.
  • Positive FI = bulls in control. Negative FI = bears dominate.
  • Use 2-day EMA FI for short-term, 13-day EMA FI for long-term trend.
  • Look for zero line crosses and divergences for trade signals.
  • Combine with RSI/MACD for reliability.
  • Great for spotting “real” vs “fake” breakouts in crypto.

With Force Index, you won’t just see price — you’ll feel the force behind the move.

Related Articles

Responses