Elder Force Index: How to Read the Real Power Behind Price Moves

Ever watch a big price move and wonder if it's real or if it'll fizzle out by the close? The Elder Force Index helps answer that. Created by Dr. Alexander Elder, it multiplies price change by volume to show whether a move has actual conviction behind it.

Price alone can fake you out. Volume alone doesn't tell direction. But when you pair them? You get a clearer picture of what's really happening under the hood.

What is Elder Force Index Indicator?

The Elder Force Index (EFI) is a volume-weighted momentum tool that shows how much "force" is behind a price move. Dr. Alexander Elder borrowed from physics: Force = Mass × Acceleration. In trading terms:

• Mass = volume (how many shares/contracts changed hands)
• Acceleration = price change from last bar
• Force = the EFI reading

The math is simple: (close today − close yesterday) × volume today.

When price rises on heavy volume, you get a big positive number. When it falls on heavy volume, you get a big negative number. When volume is light, the reading stays near zero—telling you the move probably doesn't have legs.

Most traders smooth the raw calculation with a 13-period EMA to cut noise. Similar to how Volume Flow Indicator tracks institutional moves, EFI shows where the real buying or selling pressure lives.

What is Pineify?

Pineify is a straightforward way to build and test TradingView indicators without getting stuck on code. Grab ready-made scripts (like Elder Force Index), tweak settings, and export clean Pine Script you can edit in TradingView. If you're learning, you'll find step-by-step guides. If you're experienced, you'll appreciate that things just work.

How to add Elder Force Index Indicator to TradingView?

Adding the Elder Force Index to your TradingView charts is straightforward with Pineify:

1. Visit Pineify Editor: Go to the Pineify platform and access the Pine Script editor
2. Generate or Copy Code: Use our Elder Force Index template or generate a custom version
3. Open TradingView: Navigate to your TradingView chart
4. Pine Script Editor: Click on the "Pine Script Editor" tab at the bottom of your screen
5. Paste Code: Copy the Elder Force Index Pine Script code and paste it into the editor
6. Save and Apply: Click "Save" and then "Add to Chart"

The indicator will appear in a separate pane below your main chart, showing the Force Index oscillating around a zero line with positive values indicating buying pressure and negative values showing selling pressure.

How to use Elder Force Index Indicator?

Here's a simple playbook:

Reading the basics

• EFI above zero = buying pressure (bulls are in control)
• EFI below zero = selling pressure (bears are in control)
• EFI near zero = weak conviction (price drifting, not trending)

Zero-line crosses When EFI crosses zero, it can signal a shift in force. But don't trade every cross—add a trend or momentum filter so you're not fighting the bigger picture. The ADX Trend Filter works well here.

Divergence spotting

• Bullish divergence: price makes lower lows, EFI makes higher lows → potential reversal up
• Bearish divergence: price makes higher highs, EFI makes lower highs → potential reversal down

For more on spotting divergences systematically, check out RSI Divergence in Pine Script.

Conviction check

• Big price move + big EFI spike = real deal, ride it
• Big price move + weak EFI = suspect, might fade
• Small price move + growing EFI = building momentum, watch for breakout

Smart combos

• Pair with a volume tool like Volume Accumulation Percentage to see if institutions are behind the move
• Add a trend strength filter to avoid fading strong trends
• Use on multiple timeframes—daily EFI for bias, 1h EFI for entries

Best Elder Force Index Indicator Settings

Good starting points (adjust to your market):

Defaults

• Length: 13 (EMA smoothing)
• Source: close

By style

• Scalping (1–5m): Length 5–8 → faster, noisier
• Day trading (5m–1h): Length 13 → balanced
• Swing (4h–1D): Length 21–30 → smoother
• Position (Daily–Weekly): Length 50+ → slowest, cleanest

Visual tweaks

• Plot as histogram for easier reading
• Add a zero line and maybe threshold lines (±500, ±1000, depends on asset)
• Use dual EFI (13 + 30) to see short vs. longer-term force

If you're testing settings, run small controlled tests in TradingView's Strategy Tester. This guide keeps you honest: Backtest in TradingView.

How to backtest Elder Force Index Indicator?

Keep it practical:

Entry ideas

• Long: EFI crosses above zero while price breaks resistance (add volume confirmation)
• Short: EFI crosses below zero during downtrend (or bearish divergence appears)
• Filter: only trade in the direction of the higher-timeframe trend

Stops/targets

• Use ATR-based stops or recent swing levels
• Scale out on first target; trail the rest while EFI stays strong
• Exit when EFI starts rolling over or crosses back through zero

What to compare

• With vs. without a trend filter (e.g., ADX or 200 EMA)
• Fixed position size vs. smaller size when EFI is extreme (overextension)
• Short vs. standard vs. long EFI length across different regimes

When you test, change one thing at a time and write down results. Small, controlled tweaks beat random curve-fitting. If you need a workflow refresher, here's a clear guide: Backtest in TradingView.

FAQs

Q: What's the difference between Elder Force Index and other volume indicators? A: EFI uniquely combines price change with volume, while indicators like OBV only consider volume direction. This makes EFI more sensitive to the actual force behind price movements.

Q: Can Elder Force Index be used on all timeframes? A: Yes, EFI works on any timeframe, but you may need to adjust the length parameter. Shorter timeframes benefit from shorter periods (5-8), while longer timeframes work better with longer periods (21-50).

Q: How do I avoid false signals with Elder Force Index? A: Use EFI in combination with other indicators, focus on significant divergences rather than minor fluctuations, and always consider the overall market context.

Q: Is Elder Force Index better than MACD or RSI? A: EFI serves a different purpose—it measures the force behind moves rather than momentum or overbought/oversold conditions. It's best used as a complementary indicator rather than a replacement.

Q: What markets work best with Elder Force Index? A: EFI works well in any market with reliable volume data, including stocks, forex (with tick volume), commodities, and cryptocurrencies.

Wrapping It Up

The Elder Force Index is a clean, no-nonsense way to see whether a price move has real force behind it or if it's just noise. By multiplying price change with volume, it cuts through the head-fakes and shows you where conviction lives.

Quick Q&A (before you go)

• Is EFI good for crypto? Yes—as long as the exchange reports reliable volume.
• Does it predict direction? No. It measures the force behind moves. Pair it with a trend or momentum tool for direction.
• What reduces false signals? A trend filter (like ADX) and waiting for price confirmation instead of jumping on every zero-line cross.
• Can I use it for risk management? Yes—shrink size or tighten stops when EFI spikes to extremes (overextension warning).

If you want another volume‑weighted tool to compare, look at the Volume Flow Indicator. And if you're optimizing settings or building strategies, don't skip proper testing: Backtest in TradingView.