Elder's Force Index Indicator: Application in Trading

The Elder's Force Index (EFI) indicator is a tool that helps traders assess the strength and direction of a trend based on price and trading volume. It was developed by Alexander Elder and combines two important aspects: price change and trading volume. The indicator value is calculated as the product of the price change and the volume. When the EFI has a positive value, it signals the strength of an uptrend, and a negative value indicates a downtrend. This indicator helps to identify both strong trends and market reversals, making it an essential tool in a trader's arsenal.