Elder Force Index
Volume, EFI
- What it shows
Measures the force behind a move by combining the price change with the volume of the bar.
- How it is built
The change of the close times the volume, smoothed with an EMA.
Default: Length 13.
- How traders read it
- Above zero: buyers are pushing.
- Below zero: sellers are pushing.
- A strong reading on a big volume shows a move with conviction.
- History
Introduced by Alexander Elder in his book Trading for a Living (1993).
Alexander Elder, 1993
Related indicators
Klinger OscillatorPercentage Volume OscillatorNegative Volume IndexPositive Volume Index