MarketFacilitationIndex(SeriesCollection) Method

Market Facilitation Index was developed by Dr. Bill Williams and take into consideration the price and volume.

[Visual Basic]
Overloads Public Shared Function MarketFacilitationIndex( _
   ByVal sc As SeriesCollection _
) As SeriesCollection

[C#]
public static SeriesCollection MarketFacilitationIndex( 
   SeriesCollection sc
);

Parameters

sc: A collection of series objects. For example, to evaluate this indicator for two series you will need to pass a series collection containing this two series.

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 trendline

See Also

Language