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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS

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To: - who started this subject5/30/2001 8:31:38 PM
From: drfibo   of 565
 
The Market Facilitation Index (MFI)

The MFI is a great technical indicator that provides the trader with important information as to how strongly the volume in a given period is moving the price in that period. Think of the Volume as the gas and the Price as the output. Essentially, the MFI provides us with the price change per tick (volume)and is calculated as follows:

MFI = (High of the period - low of the period)/Volume

Each MFI measurement is then compared to the previous MFI to determine how strongly the current volume is moving the price of a security.

Trade Well,

Ed - DrFibo
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