Market Facilitation Index (BW MFI) [Volume]

Market Facilitation Index (BW MFI) — биржевой индикатор объема, показывающий динамику движения ценового графика за один тик. В аналитическом использовании BW MFI indicator it makes sense to consider only its changes, not its absolute values.

Trade signals on the Market Facilitation Index indicator

Market Facilitation Index is standard in the MetaTrader trading terminal and is part of the group of instruments created by Bill Williams. Therefore, referring to the author, we should interpret the signals of the indicator as follows:

1. If BW MFI indicator and market size grownWe state that:
а. The number of active participants in the market has increased;
б. These participants open trades in the direction of the movement, and the speed of the process increases.

2. If, on the other hand BW MFI indicator and market size declinedIf you had orders set in the direction of movement, you should think about the fact that the market participants have lost interest in trading on this instrument. If you had orders set in the direction of the movement, then it is worth to think about exiting the market.

3. If. Market Facilitation Index grew upand the market volume at the same time droppedThe price changes only due to the speculation of intermediaries (brokersThe traders do not support the instrument. In the absence of interest from the main market participants it is hardly worth trading the selected asset.

4. In the reverse situation, when BW MFI indicator down, and the market volume grew up, it is assumed that the bulls and bears have entered into a serious confrontation with high trading volumes, so the price does not change significantly. As a rule, a bar breakthrough after such a struggle indicates the expected further movement of the price chart.

The formula for calculating the Market Facilitation Index indicator

BW MFI = (HIGH-LOW)/VOLUME,

Where:
— HIGH — максимальная цена текущего бара;
— LOW — минимальная цена текущего бара;
— VOLUME — объем текущего бара.