Market Facilitation Index (BW MFI) The Market Facilitation Index, developed by Dr. Bill Williams, reproduces volume and price characteristics in order to make the trade more accurate. 1-point price changing can be shown by BW MFI (Bill Williams Market Facilitation Index).myblogmoversjjd.ga /myblogmoversjjd.ga · MFI Market Facilitation Index indicator Forex Home. Indicators: TREND INDICATORS. Advance Decline Line (ADL) Average Directional Index (ADX) BW MFI (Bill Williams Market Facilitation Index) uses a simple formula. and allows to evaluate the efficiency of the market price myblogmoversjjd.ga
In this case, the price varies according to the speculations of traders, brokers, or dealers. MFI decreases while volume rises. This situation is called the battle between bulls and bears. In this case, the volumes being bought or sold are considerable whether the price does not change much as far as the affecting forces are approximately at the same level.
It is inevitable that either bulls or bears will win. In most cases the end of this process lets you see whether the trend is going on or it is about to change. According to Bill Williams, it is called "curtsying. Otherwise, a "Fake" is considered to occur when the volume gets lower whether MFI increases. It is called like this as far as there is no basis for trend changing apart from rising floor activity. The key factor is: The breakout is going to be either seen as a reversal, or a continuation of a current trend.
Either way, it is a good starting point to get in at the beginning of a trend. Interesting that nobody has commented on this indicator yet? I have a feeling that this could be a veru useful indicator but I just don't get it. I've resarched this MFI until I'm blue in the face. I even read a fairly detailed article by Bill Williams himself.
I still don't get it! Am I missing someting? Could you add anything that might turn the lightbulb on for me? I want to thank you very very much for explaining this important indicator, personnally i want to know more about it, can you advice me some other places where to find more on it, because i see that with more filter indicator this ccould be a support for any decision of a trade. This is not the easiest of indicators to understand. As always, to an inventor Bill Williams the indicator is very useful in its every detail, but for us, followers, sometimes many things and, most important, the reasoning why this indicator was created - remains undiscovered..
That's where you'll hear that following someone's system doesn't mean it'll work for you. The best way to learn about the indicator in depth is to read the original book "Trading Chaos" by Bill Williams, but don't look for easy answers there, it's the same complicated description as anywhere you look.
I will try to explain how I use it in conjunction with other trading methods. If you pull up this chart, you will see that thursday's candle was a doji which formed after somewhat of a downtrend.
It also formed right on the weekly pivot and it was also an inside bar or harami if you wish to use candlestick jargon. I felt that this pair was going to reverse bullish and the last thing that confirmed this sentiment was that the MFI was brown, meaning that further selling was unlikely.
I have charts posted on forexforums. Just search for "price action" or sniper just so you can see it visually and also so you will know that I'm not monday morning quarterbacking. Thanks for the explanation, Considering that volume indicator reflexes the broker's trading volume only and not the whole market since it's not possible, In MFI the volume is essential part of its equation does that mean that MFI accuracy depends on brokers given volume accuracy?
The value of this indicator is as a confirmation Even so I would never trade without a fast moving ATR to verify volatility because volume does not always equal volatility. Again, thank you for providing a very good explanation of a very complex indicator. I have read the book and believe me, much complicated.
Perhaps it works better on futures exchange since exact knowledge of volume and tick volume. Please reply if I am wrong. This indicator can not be used alone, but must be accompanied by other indicators. It suggests that the market is making a progressive move, but it is not supported by volume. Due to the lack of interest by traders, they are not supporting the current price movement by opening new positions.
Such a condition often ends with a price reversal. It reflects a situation when the MFI falls, but volume increases. During this period, a battle takes place between bulls and bears which would determine who will be in control during the next trend. As more and more traders enter the market, volume increases, but since the two counterparts are relatively equally matched, the price does not change significantly.
Eventually, one of the contending sides will overcome the other. Since this situation usually occurs prior to a significant move, you should pay close attention to the direction the price takes after breaking out of this slowdown. According to Bill Williams, this is the strongest money maker of the four combinations as a breakout can occur, leading either to the continuation of the current trend or the forming of a new one. Therefore a person who makes the right decision would benefit from a longer price movement and achieve better results.
Founded in , Binary Tribune aims at providing its readers accurate and actual financial news coverage.
The indicator uses tick data, does not demand installation of the period of calculation the current period of the diagram is applied. Bill Williams singles out following processes of MFI and volume changing:.
The value of this indicator is as a confirmation