It’s pretty easy to tell which direction a stock is trending at any given time. In fact, if this were the only key to making money in the stock market, anybody could do it.
The problem is, you don’t necessarily know if the stock’s CURRENT trend is going to continue, or if it might reverse at any moment. What you need is a special power — “the force” — to tell you how strong a trend is. Well, that’s exactly what the Force Index does.
Force Index is a momentum indicator that takes volume into account. It was developed by Alexander Elder, author of the classic books Trading for Living and Come into my Trading Room. This technical tool is highly accurate and can be used at no expense to you — if you know how to use it, that is.
In this episode, you’ll learn:
- Exactly what Force Index is and how it’s calculated (0:36)
- How to interpret the Force Index (1:19)
- How to use volume in conjunction with Force Index to spot potential reversals (2:01)
- How to use Force Index — for FREE (2:58)
The video also features an in-depth example of an actual stock chart with a Force Index underlay. This way you can see how to read and interpret the Force Index in real life.
Force Index can also be used to do what’s called a “long exit” strategy — where you chip away at your position over time, taking profits. This strategy, as well as others, is explained in the video.
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
P.S. Next week I’ll show you how to use the Average Directional Index (ADX). Don’t know what that is? Well stick around for next week!
