Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Results 1 to 1 of 1
  1. #1
    Nikolay.Gekht is offline Moderator
    Join Date
    Oct 2008

    Volume Indicator : Bill Williams' Market Facilitation Index

    Quote Originally Posted by Bill Williams
    "The MFI is a measure of the market's willingness to move the price. I cannot overemphasize the value of this indicator. It is a more truthful measure of market action than any stochastic, RSI (Relative Strength Index) or other momentum indicator."
    The MFI formula is

    MFI = (High - Low) / Volume

    MFI can be used for all time frames from 5 minutes up to daily and weekly frames.

    The indicator highlight four zones:

    MFI Up, Volume Up - the market is already on the move.
    MFI Down, Volume Down - appears when market starts to fade – lose interest in advancing further. Often this can be observed at the end of a trend..
    MFI Up, Volume Down - the market makes a progressive move, but this move is not supported by the volume (for any reason), this provides a clue that there are probably no real interest in the move yet, while certain group of market participants is trying to control and manipulate the market to their advantage.
    MFI Down, Volume Up - appears at the end of each trend. Bill Williams calls it "the strongest potential money maker" of the 4 setups. The squat bar is marked by an increasing volume yet temporary stalling price movement.
    รูป รูป  
    ไฟล์แนบข้อความ ไฟล์แนบข้อความ

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Disclaimer: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss in excess to your investment and therefore you should not invest money that you cannot afford to lose. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. FXCM will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.