Market Facilitation Index (MFI)
The indicator is calculated as follows:
MFI = (HIGH - LOW) / VOLUME
HIGH - the highest price of the current bar;
LOW - the lowest price for the current bar;
VOLUME - volume of the current bar.
Signals of Market Facilitation Index (MFI):
The simultaneous growth of MFI and volume says that more and more players enter the market (increasing volume), and new players take positions in the direction of the bar.
The simultaneous drop of MFI and volume of talk about reducing the interest of participants to the dynamics of the price.
MFI rose, and the volume down - the market does not support such a dynamic price. Price Change - the result of speculation.
MFI fell, and the volume increased - a fierce battle between bulls and bears (the amount raised), but the forces are roughly equal (the indicator has fallen). This bar B. Williams called "curtsying". Typically, a breakthrough of such a bar is very important in terms of future price movement.
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