What is EFI?
Elder's Force Index multiplies each bar's change in close by that bar's volume, then smooths the result with a 13-bar exponential average. A large move on heavy volume scores high, while the same move on thin volume scores lower. The line sits in its own pane around a dashed zero line, with positive readings showing buying force and negative readings selling force.
EFI measures how much volume stood behind recent price changes. It does not predict price, and its raw values are in price times volume, so the scale differs hugely between markets and has no meaning on its own.
How to use EFI
- Above or below zero. Above zero, recent up moves have carried more volume-weighted force than down moves. Below zero, the reverse.
- Crossing zero. A cross from negative to positive means the smoothed balance has turned towards buying. It confirms a change after it has happened.
- Spikes. An unusually large reading marks a bar or run of bars with a big move on heavy volume. Whether that is the start or the exhaustion of a move is not something the indicator can tell you.
- Against price. Price making a new high while EFI makes a lower high means the latest push carried less force than the previous one.
These are ways to read the line, not entry signals on their own.
Settings
| Setting | Default | What it changes |
|---|---|---|
| Length | 13 | Bars in the exponential average. Lower follows each bar's force more closely and crosses zero more often; higher is smoother and later. Minimum 1. |
Adjust the length in the indicator settings.
Calculation
Each bar's force is the change in close times the bar's volume, smoothed with an exponential average:
force = (close - previous close) * volume
alpha = 2 / (13 + 1)
EFI = alpha * force + (1 - alpha) * previous EFIThe first bar has no previous close and so no force value. The exponential average needs 13 force values to start, and is seeded from their simple average, so the first reading appears on the fourteenth bar of loaded history.
Because the values are price change times volume, a market with large volume figures produces very large readings. Only the sign and the size relative to its own recent history are meaningful.
Limitations
- The scale is market-specific. A reading on BTC/USDT cannot be compared with a reading on another market, or even on the same market on another exchange.
- It lags. The exponential average describes moves that have already happened, and a longer length adds more delay.
- Zero-line whipsaws. In a sideways market the line crosses zero repeatedly without a trend developing.
- Volume quality varies. Crypto volume differs between exchanges and can include wash trading, which inflates the force readings.
- The live candle moves. The current bar's close and volume change until it closes, so the latest value moves too.
Frequently asked questions
Elder's Force Index is an oscillator that multiplies each bar's change in close by its volume and smooths the result with an exponential average. Positive values mean recent up moves have carried more volume-weighted force than down moves; negative values mean the opposite.
Watch which side of zero it is on and how it compares with its own recent swings. A move above zero means buying force has taken over on the smoothed view. Very large readings mark heavy-volume moves. Divergences from price are context, not timing signals.
Yes. The indicator declares one input, Length, default 13 with a minimum of 1, which sets the bars in the exponential average. It always uses the close and the bar's volume. Open the indicator's settings on the chart to change it.
The raw force is a price change multiplied by volume, so the units are price times volume. On markets with large volume figures that gives very large numbers. The number itself carries no meaning; read the sign and the size relative to the line's own history.
No. Closed bars are not revised. The current bar's value moves while that bar is live and settles when it closes. Loading older history recalculates the average's starting point, so values near the very start of the loaded range can shift.
Use the Add to chart button at the top of this page. It opens BTC/USDT on Binance in the Altrady Charts terminal with the built-in Elder's Force Index already applied. On any other market, open the indicator picker on the chart and choose Elder's Force Index from the Volume group.