What is Market Facilitation Index Indicator? Profitable Forex Indicator
What is Market Facilitation Index Indicator?
Market Facilitation Index Indicator is one of the technical forex trading indicators which show the price changes per tick. It indicates the price movements based on volume.
Market Prediction Using MFI Indicator:
- When MFI indicator increase and volume also increase, this is based on the number of traders coming into the market volume increases.
- When MFI indicator falls and volume falls that mean the market traders are not involved any longer to trade.
- MFI indicator falls, but the volume increases that mean fight between bulls and bears. It referred by a large sell and buy volume, but the price is not varying radically since the forces are equal.
- MFI indicator increases, but the volume falls that mean the market is not cooperate with the volume from clients, and the price is varying due to traders.
Calculation:
Basic calculation is to subtract the highest bar price to the lowest bar price and divide it by the volume.
BW MFI = RANGE*(HIGH-LOW)/VOLUME
RANGE - Multiplication factor, which brings the divergence in points down to decimal numbers.
