Market Facilitation Index (MFI)
Market Facilitation Index (MFI) is the trading range divided by the volume. The MFI measures the price movement per unit of volume.
To interpret the MFI, compare it to the volume. When the MFI is high and volume is low, it signals a fake trend which will soon reverse. When the MFI is low and volume is high, it signals a new trend in either direction is about to occur. When the MFI is low and volume is also low, it signals a fading market and an impending trend reversal. When the MFI is high and volume is also high, it signals a strong trend.
The Market Facilitation Index was developed by Dr. Bill Williams and is described in his 1995 book, Trading Chaos.
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