MarketStrength.MarketFacilitationIndex Method 

Market Facilitation Index was developed by Dr. Bill Williams and take into consideration the price and volume.

Parameters

high

The traded high of the asset on the trading period under consideration.

low

The traded low of the asset on the trading period under consideration.

volume

The traded volume of the asset on the trading period under consideration.

Return Value

The double value of the Market Facilitation Index for the trading period under consideration.

Remarks

Evaluation

The formula for the calculation of MFI is:

MFI = (high - low)/volume,

where high is the highest traded price during the period, low is the lowest traded price during the period and, volume is the overall volume traded on that period.

Interpretation

There are four types of trading sessions called:

1. Fakes - volume is low but MFI is rising
2. Fades - both volume and MFI is down (the price might move in the opposite direction)
3. Squats - the volume is up, MFI is down
4. Greens - when the MFI and volume are up which represent a strong signal to follow the trend line

See Also

MarketStrength Class | Indicators Namespace | MarketFacilitationIndexOverPeriod - a generalization of this indicator which calculates the values of the Market Facilitation Index indicator over specified period.