Colored Columns for Elder's Force Index EMA

The Elder's Force Index is an oscillator that takes into account the change of the price combined with the volume:

EFI = (close of the current day - close of the previous day) * volume of the current day

If measure the force of the price change.

If you calculate the exponential moving average of the last two days to smooth the signal EMA(EFI,2), you have a nice buy/sell indicator in the context of the "Elder Triple Screen Method":

- If you are in a long term uptrend (for example ema(13) going up), you have a buy signal if EFI(2)<0, because then you have a short term downtrend in a long term uptrend. Put a "stop buy" a bit higher in case the long term uptrend continues.
- If you are in a long term downtrend (for example ema(13) going down), you have a sell signal if EFI(2)>0, because then you have a short term uptrend in a long term downtrend. Put a "stop sell" a bit lower in case the long term downtrend continues.

This graph shows you colored columns for the EMA(EFI,2), which is more visible than the one-color indicator provided by default by TV.
You can also display the EFI itself on top of the columns. (optional, I personaly do not use it)

PS: ema(13) is to make the explanation simple. Personaly, I use MACD histogram on a weekly view to define if I am on a long term uptrend or downtrend.

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