The Market Facilitation Index measures the degree of strength associated with the forces that are causing the price of an asset to move. This indicator helps traders to decide whether a trend will continue for long enough to allow them to profit. They’ll know whether it’s a good idea to enter a trade.
Changes in the size of price moves are assessed via this indicator. It also looks at changes in trading volume, to give you an indication of the strength of the trend. Strength is indicated by the color of the bars. When a green bar appears, it means more traders are entering in the direction of the current price move.
Calculating Market Facilitation Index
In these calculations, the RANGE is the multiplication factor. It’s used to brings the points difference to whole numbers.
To find the Market Facilitation Index, subtract the smallest bar price from the highest one and divide your answer by the volume. BW MFI = RANGE*(HIGH-LOW)/VOLUME