Unknown Indicator

Market Facilitation Index is simply a difference between period high and low prices divided by period trading volume.
Market Facilitation Index was developed by Dr. Bill Williams. This indicator can help to determine either strong or week signal that can follow the current trend line by looking at how Market Facilitation index correlates with trading volume over time.

Market Facilitation Index In A Nutshell

This is plotted on the bottom of a chart and is used together with volume and price. If MFI begins to increase and so does volume, this could mean that the trend is likely to continue. If the MFI is low and volume is low, this could mean that the trend is losing steam and may be time to reverse.

Market facilitation index or MFI for short, helps people in finding the price movements of the market. Learning how price and volume move together can certainly help to give you an edge in your current trading and investing setup.

Closer Look at Market Facilitation Index

The best way to test this would be to open a demo account and begin plotting it on a chart or two and see if it is acting the way you would expect it to. Charting tools are very individualized in the way that everyone trades and invests differently with different motivations and this tool may not fit your style.

Some other tools this would work well with would be standard deviations or Bollinger Bands as this can help give you ideas of where the market wants to be. This is when joining an investing and trading community comes in handy because you can bounce ideas off of people who are active participants in the market. If you’ve hired an investing professional I would reach out to them for their opinion.

Remember that technical analysis leaves out the fundamental data that is just as crucial because this will decide how the company is going to do for years to come. Be sure to use both analysis tools together to give you a well rounded opinion. Test out MFI and if for some reason it doesn’t work with your trading style, you will at least have the knowledge going forward incase a time and place pops up to being implementing the tool.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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