Bill Williams indicators
Market Facilitation Index (BW MFI)
How much the price moved per unit of volume, coloured by whether price movement and volume rose or fell.
Идея простыми словами
If a little volume moves the price a lot, the market is "easy" to move in that direction. Comparing this efficiency with volume reveals four situations: a strong move (green), a fading move, a fake move and a pause before a breakout ("squat").
Как считается
Candle range divided by volume. Colour: green if both rose, brown if both fell, blue if the index rose but volume fell, pink if the index fell but volume rose.
BW MFI = (high − low) ÷ volume
Green: MFI ↑ volume ↑ Brown (fade): MFI ↓ volume ↓
Blue (fake): MFI ↑ volume ↓ Pink (squat): MFI ↓ volume ↑Как использовать
- Green bars: join the move.
- Pink (squat) bars: a battle before a breakout; watch which way it breaks.
- Brown bars: interest is fading; the move may end soon.
Выводы
- Most useful at the edges of ranges and after strong moves.
Пример
Near a resistance level the BW MFI prints a pink bar: heavy activity but little movement. The next candle breaks the level with a green bar.
Цены в примерах приведены для иллюстрации.
На что обратить внимание
- On currencies, metals and CFDs there is no central exchange volume. The chart uses "tick volume", the number of price changes in each candle, which follows real activity closely but is not the number of contracts traded.
Немного истории
Bill Williams, "Trading Chaos" (1995).
Только образовательный материал. Ни один индикатор или паттерн не предсказывает будущее, и ничто здесь не является инвестиционной рекомендацией.