Visual Basic (Declaration) | |
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Overloads Public Shared Function MarketFacilitationIndex( _ ByVal sc As SeriesCollection _ ) As SeriesCollection |
Visual Basic (Usage) | Copy Code |
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C# | |
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public static SeriesCollection MarketFacilitationIndex( SeriesCollection sc ) |
Parameters
- sc
- A collection of series objects. For example, to evaluate this indicator for two series you will need to pass a series collection containing this two series.
Evaluation
The formula for the calculation of MFI is:
MFI = (high - low)/volume
where high
is the highest traded price during the period, low
is the lowest traded price during the period and, volume
is the overall
volume traded on that period.
Interpretation
There are four types of trading sessions called:
- Fakes - volume is low but MFI is rising
- Fades - both volume and MFI is down (the price might move in the opposite direction)
- Squats - the volume is up, MFI is down
- Greens - when the MFI and volume are up which represent a strong signal to follow the trendline