Forex Bill Williams Market Facilitation Index (BW MFI) Multi Trend Trading System and Strategy

High Accuracy Forex BW MFI Trading System – Forex Bill Williams Market Facilitation Index (BW MFI) Multi Trend Trading System and Strategy. The Market Facilitation Index, developed by Dr. Bill Williams, reproduces volume and price characteristics in order to make the trade more accurate.

Forex-BWMFI-Trading

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 days low from the high and dividing the result by the total volume.

 

Market Facilitation Index (MFI) Analysis and Trading Rules

 

As an indicator on its own the MFI is of no significant value.

Nonetheless, if the current price candles MFI and volume are compared to the previous candles MFI and volume, the index starts to have some significant tradable data.

Forex-BWMFI-Trading-Analysis

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 amount 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 which indicates that the trend has begun and is picking up speed.

  • FADE: The MFI falls and volume falls.

It means that the market participants are indifferent and the price movement is small on small volumes. This usually happens at the end of a trend.

  • FAKE: The MFI increases, but the volume falls.

It is highly likely that the market is being supported by broker speculation and not any significant client volume.

  • SQUAT: The MFI falls, but the volume increases.
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In this particular situation bulls and bears are fighting between themselves to see who will dominate the next trend.

These battles are noticeable by the large sell and buy volumes. However, the price does not change appreciably since the strengths are equal.

One of the competing parties either the buyers or the sellers will ultimately triumph in the battle.

Usually, the fracture of such a candle indicates if this particular candle determines the continuation of the trend, or terminates the trend.

 

This “Forex Bill Williams Market Facilitation Index (BW MFI) Multi Trend Trading System and Strategy” is intraday or small swing.

  • Best time frame : H1, H4, and D1 (Daly)
  • Recommended Markets : Forex, Indicies (S&P 500, Dax, FTSE, Dow Jones)

 

Metatrader Trading Indicators

  • Bill Williams Market Facilitation Index
  • Alligator
  • MA Cross OC
  • enLight Channel Draw
  • Signal Trend
  • Multi Trend Signal
  • FX Fish
  • RSI (5)

 

BUY Rules

Forex-BWMFI-Trading-BUY

  • Bill Williams Market Facilitation Index GREEN Bar ( The MFI increases and the volume increases)
  • Alligator uptrend
  • MA Cross OC blue arrow below the bullish candle
  • enLight Channel Draw up trend
  • Signal Trend green bars
  • Multi Trend Signal blue bars
  • FX Fish green bars above 0 level
  • RSI (5) line upward above 50 level
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SELL Rules

Forex-BWMFI-Trading-BUY

  • Bill Williams Market Facilitation Index GREEN Bar ( The MFI increases and the volume increases)
  • Alligator downtrend
  • MA Cross OC red arrow above the bearish candle
  • enLight Channel Draw down trend
  • Signal Trend red bars
  • Multi Trend Signal red bars
  • FX Fish red bars below 0 level
  • RSI (5) line downward below 50 level

 

Market Facilitation Index Trading Notes

  • Avoid Trading Too Aggressively

Trading too aggressively is perhaps the biggest mistake new traders make.

If a small sequence of losses would be enough to eradicate most of your risk capital, it suggests each trade has too much risk.

  • Envisage exit points before entering a position

Think about what levels you are aiming for on the upside and what loss is sensible to withstand on the downside.

Doing so will help you to maintain your discipline in the heat of the trade. It will also encourage you to think in terms of risk versus reward.



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