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Market Facilitation Index (MFI)
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The Market Facilitation Index (MFI) indicator helps predict trend continuation or reversals by measuring an asset's price that should be interpreted in connection with the volume changes. There are 4 situations available:
- MFI increases and the volume increases - the trend continuation
- MFI decreases and the volume decreases - the market participants lost interest
- MFI increases, the volume decreases - upcoming trend reversal
- MFI decreases, the volume increases - both trend continuation and reversal are possible
The Market Facilitation Index is calculated as the difference between the day's low and high divided by the total volume.
MFI = (High - Low) / Volume
PLOTS
The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.
Plot | Description |
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MFIdx | The Market Facilitation Index plot |
Color |
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Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color. To create a custom color:
The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette. |
Weight |
Change the value (in px) to adjust the thickness of the plot. |
Type |
The following plot types are available:
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OVERLAYING
Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.