An array of length equal to the number of periods considered in the indicator evaluation where the first element is the high in the last trading period, the second term is the high in the previous period and so on.
low
An array of length equal to the number of periods considered in the indicator evaluation where the first element is the low in the last trading period, the second term is the low in the previous period and so on.
volume
An array of length equal to the number of periods considered in the indicator evaluation where the first element is the volume in the last trading period, the second term is the volume in the previous trading period and so on.
Return Value
An array is returned where the first term corresponds to the MFI of the last trading period, the second term gives the MFI on the previous trading period and so on.
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:
Fakes - volume is low but MFI is rising
Fades - both volume and MFI is down (the price might move in the opposite direction)
Squats - the volume is up, MFI is down
Greens - when the MFI and volume are up which represent a strong signal to follow the trend line