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Market Facilitation Index
The Market Facilitation Index (MFI) is the creation of Bill Williams. The indicator endeavors to establish the effectiveness of price movement by computing the price movement per volume unit. This is accomplished by subtracting the day's low from the high and dividing the result by the total volume. (See below) Analysis As an indicator on its own the MFI is of no significant value. Nonetheless, if the current price candle's MFI and volume are compared to the previous candle's MFI and volume, the index starts to have some significant tradable data. The four possible groupings of MFI and volume were termed Green, Fade, Fake and Squat by Williams. Green: The MFI increases and the volume increases. This means that the number of participants entering the market increases, therefore the volume increases and the fresh incoming players align their positions in the direction of candlestick growth. Notice the long solid candles in the candlestick chart A candlestick chart (also cal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bill Williams (trader)
Bill M. Williams (1932–2019) was an American trader and author of books on trading psychology, technical analysis, and chaos theory in trading the stock, commodity, and foreign exchange (Forex) markets. His study of stock market data led him to develop a number of technical analyses that identify trends in the financial markets. Indicators like Accelerator/Decelerator Oscillator, Alligator indicator, Awesome Oscillator, Fractals indicator, Gator Oscillator, and Market Facilitation Index are popular today in Forex, stock, and other |
Candlestick Chart
A candlestick chart (also called Japanese candlestick chart or K-line) is a style of financial chart used to describe price movements of a security, derivative, or currency. It is similar to a bar chart in that each candlestick represents all four important pieces of information for that day: open and close in the thick body; high and low in the “candle wick”. Being densely packed with information, it tends to represent trading patterns over short periods of time, often a few days or a few trading sessions. Candlestick charts are most often used in technical analysis of equity and currency price patterns. They are used by traders to determine possible price movement based on past patterns, and who use the opening price, closing price, high and low of that time period. They are visually similar to box plots, though box plots show different information. History Candlestick charts are thought to have been developed in the 18th century by Munehisa Homma, a Japanese rice tra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bull And Bear Markets
A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A market trend can only be determined in hindsight, since at any time prices in the future are not known. Market terminology The terms "bull market" and "bear market" describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The terms come from London's Exchange Alley in the early 18th century, where traders who engaged in naked short selling were called "bear-skin jobbers" because they sold a bear's skin (the sh ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
