subject: Bill Williams Trading And Profitunity [print this page] The core of the Profitunity method is the Market Facilitation Index otherwise known as MFI. The MFI shows the range of the bar (From high to low) that is then divided by the volume.
Gathering together all of the MFI, every bar will then show a relationship of the price activity to volume.
Essentially, MFI will measure how efficient a market is and will track the level of movement in price when compared to volume.
You are able to estimate the ability of the existing bar to ease price to earlier bars ability by comparing each bar's MFI.
The Profitunity approach will accommodate periods ranging from daily to monthly.
As an indicator by itself, MFI doesn't really mean a lot. But when the MFI and the volume of the existing bar is put up against the previous one you get a very good system of dealing.
Bill Williams Trading has claimed that there are four potential blends of volume and MFI
The first thing to make clear is that any plus sign denotes that the current bar's value is greater than that of the earlier one.
It so follows that a minus sign will show that the value of the current bar is exceeded by that of the previous bar.
Bill Williams Trading Profitunity - Green
This term is for when there is an increase in the MFI and the volume in comparison to the earlier bar. So prices change and compared to previously, the MFI has grown. What's more, there will be an increase in the number of dealers as shown by a rise in the volume. The futures market activity levels signifies that traders away from the floor are upping their activity levels. This price action will be directional. Or simply put, as dealers put on new positions, the market will only move in the one direction. You would rather be having your trades already placed in the same direction.
Bill Williams Trading Profitunity - Fade
{When compared to the previous bar, this bar will show a
