Visual Basic (Declaration) | |
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Overloads Public Shared Function MarketFacilitationIndex( _ ByVal seriesName As String, _ ByVal s As Series _ ) As Series |
Visual Basic (Usage) | Copy Code |
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C# | |
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public static Series MarketFacilitationIndex( string seriesName, Series s ) |
Parameters
- seriesName
- The name of the series which will be displayed on the chart, i.e. its label.
- s
- The financial series where the first element is the traded price on the most recent period, the second element is the traded price of the previous periods and so on, for the asset under consideration.
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