Bill Williams is known for famous indicators such as the Alligator. The Market Faciliation Index (MFI) is an indicator developed by Bill Williams that takes volume into account for for generating values.
It is a good idea to use this indicator with the standard MT4 volume indicator. There are many ways in which the MFI can be applied in trading, and here in this article we will discuss the most important ones.
While this indicator is useful for volume analysis, it is somewhat difficult to trade with it alone. It is a good idea to identify trends with this indicator and rely on other indicators for entry.
Tips for using:
Market conditions can be judged according to various scenarios.
1. Both MFI and volume are increasing
Evidence that the market is becoming more dynamic as the number of market participants increases with both volume and the MFI on the rise. Often occurs at the beginning of a trend.
2. Both MFI and volume are decreasing
Suggests that market participants have lost interest.
3. MFI rises, volume falls
Occurs when the volume is not supplied properly. The market price tends to fluctuate depending on the situation.
4. MFI is falling, volume is rising
The situation where buying power and selling power are in conflict. It is likely to occur during the range market.
(High-Low) / Volume
Download "MarketFacilitationIndex" from the button below
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Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.