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Volume Indicator : Bill Williams' Market Facilitation Index
The MFI formula is
Originally Posted by Bill Williams
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.
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