MFI (Market Facilitation Index)

The Money flow index (MFI) is an oscillator that ranges from 0 to 100. A value of 80 or more is generally considered overbought, a value of 20 less oversold.

Divergences between MFI and price action are also significant, for instance if price makes a new rally high but the MFI is less than its previous high then that may indicate a weak advance is likely to reverse.

Calculation To calculate Market Facilitation Index you need to subtract the lowest bar price from the highest bar price and divide it by the volume. BW MFI = RANGE*(HIGH-LOW)/VOLUME Where:

• RANGE — is the multiplication factor, which brings the difference in points down to whole;
• HIGH — maximum price of the current bar;
• LOW — minimum price of the current bar;
• VOLUME — volume of the current bar.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.