Question 112—Trading Signals of the Force Index
Figure 112
On the chart above, you can see that the downspikes of the Force Index (marked by solid arrows) tend to be followed by price bottoms the following day. The chart also shows that the upspikes of the Force Index (marked by dashed arrows) tend to be followed by the continuation of the uptrend rather than a top. These differences indicate that:
1. This indicator works only in downtrends.
2. This indicator works only in uptrends.
3. Uptrends and downtrends are not symmetrical and have to be traded differently.
4. One can base a trade on a single indicator in a bear market.
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