The Market Facilitation Index indicator measures the strength or weakness behind movements in an asset’s price. It helps you decide whether a trend is strong enough to justify trading it and when a new trend may be about to start.
Configuration Options
- Scale Factor: TBD
- Color Selectors: Colors to use for graph elements.
- Display Axis Label: Whether to display the most recent value on the Y axis.
Formula
To calculate Market Facilitation Index you need to subtract the lowest bar price from the highest bar price and divide it by the volume.
\[BW MFI = \frac{(HIGH – LOW)}{VOLUME} \]
where:
- HIGH = the highest price of the bar
- LOW = the lowest price of the bar
- VOLUME = volume of the current bar