Forex Force Index Trading Strategy
Forex Force Index Trading Strategy;
The Force Index focuses on three key pieces of market information — price change, extent of price change and trading volume. The force of every move is defined by its direction, distance, and volume. If prices close higher, the force is positive, if lower, then negative. The greater the change in prices, the greater the force. The greater the volume, the greater the force. That is the simple but powerful concept behind Force Index.Like other oscillators, Force Index works best if it is smoothed with a moving average (MA). Force Index smoothed with a short MA , e.g. two days, helps pinpoint entry and exit points. Force Index smoothed with a longer MA, e.g. 13 days, shows major change in the force of bulls and bears.
Building the Force IndexYou can build your own Force Index database for any security or index in a spreadsheet. Here is the formula:
Force Index = Volume Today * (Close Today – Close Yesterday)
Forex Indicators:
Forece Index (period 13) with moving average smoothed (3 period);
Stochastic (14,3,3,);
21 EMA exponential moving averages;
3 MA Smoothed.
Buy
3 Moving Average smoothed>21EMA;
Force Index>Ma smoothed;
Stochastic indicator>60.
Sell
3MA Smoothed<21EMA;
Force Index<Ma smoothed;
Stochastic indicator<40.
Exit Position:
When 3 Moving average smoothed crosses in opposite direction.
Profit Target ratio 1.5 or
30 min TF=20-25 pips Profit Target,
60 min TF=25-30 pips Profit Target,
240 min TF= 40-50 pips Profit Target,
Daily TF= 60-90 pips Profit Target, this the best option for exit position.
Stop loss the previous swing.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Force Index Trading Strategy?
- Download Forex Force Index Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Force Index Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
