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Elder Force Index With ATR Channels


Adding the normal True range (ATR) station to the Force indicator has been suggested by Kerry Lovorn. Adding these stations which makes Force Index an superb tool for identifying intermediate peaks and troughs. The potency index with ATR stations doesn’t catch all the reversals, but those it defines deserve serious attention.

note: The term “true” in the Average True Range describes closing cost openings. since there are no gaps in the strength index, here the ATR will be the same as the average range.

Whenever the strength index rises above or drops under its 3-ATR station, this means that the ticker has reached the region of an unstable extreme. In these zones, the ups and downs are depleted, and prices tend to reverse. This is one of the few tools that are equally effective at calling both the top and bottom areas. Elder-disk sets a red arrow above the chart when the Strength index EMA rises above the 3-ATR channel. It places a red arrow under the chart when this EMA falls below the 3-ATR channel.

In our experience, these signals work particularly well on weekly charts. Of course, users can experiment with them on any timeframe.

To prevent the plotted graph from being smoothed by any extreme value, Force Index with ATR Channels is programmed to discard values at the 4-ATR level. This function can be disabled using the ‘Shrink values too high ‘ parameter (true = enabled, false = disabled).

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  • Length for EMA of Raw Force Index (13) – the length of the EMA for raw Force Index values
  • Length for EMA of Bands (21) – the length of the EMA of the upper and lower bands.
  • Applied Volume (Tick volume) – the volume to calculate the Force Index.
  • Shrink values too high (true) to discard the values of the Force Index is above 4-ATR. Set the value to False to keep the original value.
  • Color of spike signs (red) – color of the spike arrow.
  • Size of spike signs (2) – the size of the arrows burst.

You can choose which Force Index to use: the original “classic” version or the new one with ATR channels. One possible option is to use the new Force Index with ATR Channels on your weekly charts and the original smoothed Force Index on the daily chart.

Tips on format: The strength index channel has 7 graphs – strength index, smoothed strength index, upper and lower ranges in 1, 2 and 3 ATR.

The strength index is drawn with a thick blue line. The average strength index is a solid red line. The upper and lower bands in 1 ATR are drawn with dashed lines. The upper and lower bands in 2 ATR are drawn with broken lines. The upper and lower bars in 3 ATR are drawn with solid gray lines.


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