Volume Indicator : Bill Williams' Market Facilitation Index

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Volume Indicator : Bill Williams' Market Facilitation Index

Postby Nikolay.Gekht » Sat Aug 28, 2010 9:06 pm

Bill Williams wrote:"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.

bwmfi.png


Download:
bwmfi.lua
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BWMFI with Alert.lua
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MTF MCP Market Facilitation Index List.png

The symbols will show the price direction.
The color is transferred from Market Facilitation Index Indicator.
MTF MCP Market Facilitation Index List.lua
(11.71 KiB) Downloaded 523 times

Market Facilitation Index Bar.png

Market Facilitation Index Bar.lua
(6.61 KiB) Downloaded 511 times
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby jcervinka » Wed Apr 06, 2011 2:08 pm

Hi

Thanks for this great indicator.
I have jus read the B.W. book ''Trading chaos'', and this is the indicator i hve ben searching for...
Exelent!

Can you , please, make an signal for it. I mean, to have a sound whenever some pattern are made.

Thankks a lot and rergards

Jernej
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby Apprentice » Wed Apr 06, 2011 5:06 pm

Your request has been added to the development Cue.
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby bingyunid » Wed Apr 06, 2011 9:56 pm

Hi,Nikolay.Gekht , i have a question about this indicator. What does the length of the BAR(indicator value) mean? It changes so fast, does it mean the power of this bar? Thanks very much
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby Apprentice » Thu Apr 07, 2011 3:13 am

Directly, no.
Indirectly yes.

Bill Williams' Market Facilitation Index is a derivative of volume.
Increase in volume, resulting in the growth of BW MFI.

The larger the volume in the period, the signal is stronger.
But to use it successfully you have to know what mean all and any particular indication of BW MFI.
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby bingyunid » Fri Apr 08, 2011 3:50 am

Got it. Thanks very much, Apprentice
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby Blackcat2 » Sun Apr 10, 2011 8:29 pm

Any recommended links on how to read, interpret, analyse, etc?

Thanks..
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Re: Volume Indicator : Bill Williams' Market Facilitation Index

Postby Apprentice » Mon Apr 11, 2011 8:12 am

Not really. Maybe Google.
This is not an exact indicator.
Instead of the signal gives you a feel for the market.
(Correct me if I'm wrong)

Market Facilitation Index (BW MFI) analyzed the amount of price change for each unit
volume.

MFI = (high - low) / VOLUME

We distinguish four different situations

Green - Growing Market Facilitation Index and Volume
a) A growing number of investors entering the market (volume increases)
b) The new open positions are open in the direction of the candle in the making, momentum gained in strength.

Fade - Falling Market Facilitation Index and Volume
Shows a decline in interest for the creation of new positions, suggesting the possible end of the current trend.

Fake - Market Facilitation Index increases while volume decreases.
The growth rates there is no confirmation in turnover, the interest of investors, growth in value caused by speculators (brokers and dealers).

Squat - Market Facilitation Index falls as volume increases.
Pressure to sell is equal to the pressure to purchase. High volume fail to significantly change the price. One of the parties, buyers or sellers, sooner or later will overpower the other. Usually preceded by a significant change in trend. Next candles, gives us a direction, whether there will be a continuation of or changes to the current trend. We call it the Squat bar, the market is on hold before the jump.

From My Blog.
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Re: Volume Indicator : Bill Williams' Market Facilitation In

Postby Mist1949 » Mon Apr 06, 2015 12:54 pm

Is it possible to use Real volume (FXCM Trading Station-Marketscope) instead of tick volume for this indicator? I suppose it would be more accurate.
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Re: Volume Indicator : Bill Williams' Market Facilitation In

Postby Apprentice » Wed Apr 08, 2015 6:44 am

For now I do not plan to provide support for real volume.
Real volume is available only for selected currency.
Plus Real volume indicator code is not available.
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