What is the Market Facilitation Index?

December 20, 2022 | monetaeditor

The Market Facilitation Index (MFI) is a technical analysis indicator that measures the change in price and volume in the financial markets. It was developed by Bill Williams, a well-known trader and author of several books on technical analysis and trading. The MFI is displayed as a histogram below the main price chart and is used to identify potential buying and selling opportunities based on changes in market volatility and trend strength.

How is it used by traders?

Traders typically use the MFI to identify potential buying and selling opportunities based on changes in market volatility and trend strength. The MFI is calculated by dividing the difference between the high and low price for a given period by the volume for that period. The resulting value is then compared to the previous period’s value to determine whether market volatility is increasing or decreasing. A rising MFI value may indicate that the market is becoming more volatile and may be due for a trend reversal, while a falling MFI value may suggest that the market is becoming less volatile and the current trend is likely to continue.

How can I add the Market Facilitation Index to a chart in MT4 or MT5?

To add the Market Facilitation Index to a chart in MetaTrader 4 (MT4) or MetaTrader 5 (MT5), follow these steps:

Open the chart for the currency pair, stock, or other instrument that you want to analyze.

Click on the ”Insert” menu at the top of the chart and select ”Indicators” from the drop-down list.

In the ”Indicators” window, scroll down until you find the ”Market Facilitation Index” and then double-click on it to add it to the chart.

The Market Facilitation Index will appear on the chart as a histogram below the main price chart.

You can customize the appearance of the MFI by right-clicking on it and selecting ”Properties” from the context menu. This will open the ”Market Facilitation Index” properties window, where you can change the color, line style, and other settings for the indicator.

Once you have customized the MFI to your liking, click ”OK” to apply the changes and close the properties window. The updated MFI will be displayed on the chart.

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Legal Information:
Moneta Markets is a trading name of Moneta Markets (Pty) Ltd, an authorised Financial Service Provider (“FSP”) registered and regulated by the Financial Sector Conduct Authority (“FSCA”) of South Africa under license number 47490 and located at 1 Hood Avenue, Rosebank, Johannesburg, Gauteng 2196, South Africa. Company Registration Number: 2016 / 063801 / 07. Contact Phone Number: +27 (10) 1429139. Operational Office: 31 First Avenue East, Parktown North, Gauteng, Johannesburg, 2193, South Africa.

Moneta Markets is a trading name of Moneta Markets Ltd, registered under Saint Lucia Registry of International Business Companies with registration number 2023-00068.

Mmonexia Ltd, facilitates payment services to the licensed and regulated entities within the Moneta Markets Organizational structure.

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