Elder Force Index (EFI) Indicator Explained

Alexander Elder's Force Index multiplies each bar's price change by its volume: a 20-pip rally on triple volume registers three times the force of the same rally on normal turnout. Smoothed with an EMA, it becomes a readable gauge of who's pushing and how hard.

How It Works

• (Close − previous close) × volume, EMA-smoothed (2 for triggers, 13 for trend).
• Positive force = buyers driving with real participation.
• The 2-period version spikes on impulses; the 13-period reads the campaign.

How to Trade It

Elder's classic combo: trade in the direction of the 13-period Force Index, entering when the 2-period dips against it (buy the pullback in force, not just in price). Divergence between price highs and force highs is a first-class exhaustion warning.

Building It in Setup.Cash

Add Elder Force Index (EFI) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See OBV for the cumulative cousin. For the full category overview, see the volume indicators library guide.

Volume tools need volume data, so they shine on crypto and stocks. Backtest on the exact symbols and feed you plan to trade.