Description
The Market Facilitation Index (MFI) is a study which is intended to predict trend continuation and reversals based on both volume and price data. It is calculated as percent ratio of the current range (High - Low) to volume.
It is suggested that you use the study plot in combination with volume chart.
Rising MFI with decreasing volume might indicate an upcoming trend reversal. Rising volume with MFI values falling indicates that both continuation and reversal are possible; it is likely that the trend will follow the direction of next price movement.
When both MFI and volume fall, market participants are not interested anymore so that the price might go in the opposite direction. When both MFI and volume rise, it is considered a continuation signal.
Plots
| Plot | Description |
|---|---|
MktFacilIdx
|
The Market Facilitation Index plot. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.