The Market Facilitation Index (BW MFI) is an indicator that shows the change in price for one tick. The actual value of the indicator has no meaning, but changes in the value are significant when combined with the market volume, as shown in the table below.
|Increasing||Increasing||New players are entering the market, and are aligned with the current market direction.|
|Increasing||Decreasing||The price is a result of speculation by a few traders, and there is no broad support.|
|Decreasing||Increasing||There is a battle between the bears and the bulls, and one group will eventually win. This is known as ‘curtseying’.|
|Decreasing||Decreasing||There is little interest in the market.|
The BW MFI is the difference between the high and low prices for an interval, divided by the volume.
BW MFI = RANGE * ( HIGH – LOW ) / VOLUME
RANGE is a multiplication factor used to set a reasonable scale for the BW MFI