ChartChampions

Market Facilitation Index - MFI

Using Market Facilitation Index - MFI you will be able to recognise two important metrics:

Whether the current trend is strong enough to trade it.
When a new trend may start.


MFI combines changes in price (range) and volume . Here is the formula:

MFI = (High – Low) * Volume

The indicator has bars of four colours. Each colour has a specific meaning and shows how the market responds to a change in volume .

Green. A green bar forms in the situation that both MFI and the volume are up. It means that more and more traders join the market in the current direction. In other words, it points to a strong trend, so you can open trades in line with this trend.

Brown. A brown bar appears when both MFI and the volume decline. It is also called “fade”. It signals that traders are hesitating and don’t want to continue the trend anymore. As a result, it’s not recommended to join the trend. Several brown bars are a sign of the potential reversal of the trend.

Blue. A blue bar forms when MFI increases, but the volume declines. A spike in price may be short-lived a precede a change in the trend. Blue bars appear at the times when newbies enter the trend, but professional traders know that it’s already too dangerous.

Pink. A pink bar, also known as squat, appears when MFI is diminishing, but the volume is growing. It reflects an increase of trading interest and an active fight between buyers and sellers. After one of the sides wins, the price will likely make a big move breaking support or resistance levels. The MFI , however, can’t be used to determine the direction of the breakout.
Apr 01
ملاحظات الأخبار: colours updated.
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Hi Daniel, been playing around with this and looks to be a great tool! I just have a question regarding the format of the bars, I seem to always end up with long blue bars and then the rest are very short and hard to see, switching to log scale helps a bit and it is less of a problem with certain instruments but still quite difficult to read a lot of the time, what am I doing wrong?
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Thanks for sharing Daniel! :)
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Please check your colours for fadebar and fakebar. I think your text should read Blue (not brown) for fadebar and maroon (not blue) for fakebar.
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@Blynker, Haha yes you are correct i write all the description correct and then missed the code
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الصفحة الرئيسية منصة الأسهم منصًة العملات منصّة العملات الرقمية جدول الأعمال الاقتصادي برامج تعليمية كيف نعمل مميزات الرسم البياني أسعار العضوية قوانين الموقع المشرفون حلول المواقع الإلكترونية والوسطاء الأدوات حلول الرسوم البيانية مكتبة الرسوم البيانية صغيرة الحجم مركز المساعدة إحالة صديق طلب الخصائص المدوّنة والأخبار الأسئلة الأكثر شيوعًا معرفة تويتر
الملف الشخصي إعدادات الصفحة الشخصية الحساب وإعداد الفواتير إحالة صديق تذاكر الدعم الخاصة بي مركز المساعدة التحاليل المنشورة المتابعين تتابع رسالة خاصة المحادثة تسجيل الخروج