ฝัง
- เผยแพร่เมื่อ 25 มิ.ย. 2024
- The Market Facilitation Index is an incredibly useful indicator that categorizes the price and volume of an asset into 4 states. This trading indicator, therefore, provides vital intelligence about whether market conditions are suitable for different types of trading strategies. Developed by Bill Williams, it can help tip the probabilities more in favor of the systematic trader.
The four states are termed 'Green', 'Fade', 'Fake', and 'Squat' and they help to categorize both market activity, and price volatility, allowing the filtering of trade execution to take place when the state is not suitable to a particular trading strategy.
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This is Episode 78 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 18 of the new 'Volume Data' mini-series.
Video Contents:
00:00 Introduction
01:29 The Market Facilitation Index
02:58 The Market Facilitation Index Chart Indicator
03:23 Indicator Purpose
03:51 The 'Green' State
05:50 The 'Fade' State
08:01 The 'Fake' State
09:10 The 'Squat' State
11:14 Summary and Closing
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: www.darwinex.com/legal/risk-d...
Thanks Martin ive really got a lot from the last couple of videos !! I appreciate you digging deeper into the comparisons between certain indis.
Very interesting. I am looking forward to the next episode.
Fantastic Video !!! As you said, this indicator is very much suitable for algo trading. Keep videos coming...
Thanks !!
thank u so much.... beautiful wait for more information specific use the indicator.
Pink one is the best.
outstanding content!
Reading Bill Williams book now and def seems to be a value add
Very very very good explanation
4:33 always the cliff hanger
thanks, this is one of the indicators I never understood
Dear sir can please mention links of your previous videos on the same topic.
I am a trade futures and I am considering starting to operate with Darwinex. I am waiting for them to enable the Darwins and Darwinia option for futures to understand the advantages, disadvantages and considerations for the futures market trader.
The question I have is the following: what volume is informed by a CFD and Forex broker considering that they are not centralized markets?
The short abbreviation should be MFX . the x for index like the adx indicator.
What is it in trading view?
It'll be better if u pls used, subtitle for ur video. we feel more enlighten
I need to be honest, sometimes when i test your trading advises, Martin, I found myself confused. I understand the theory behind your thinking but then in the practice it's very hard to rely on the information provided by the MkFI. A the moment, i can only say that it works best in moments of high volatility
What really works tho, is the mindset of exploration, theory and testing (a TON of testing) that is so nicely carried across all your series.
That is forever changing my approach to trading.
I'm very grateful for you content :)
Content Request: if this is something you're using yourself, can you publish a mini-series about exit indicators?
"exit indicator" you must be from NNFX. Fyi, it totally depends on the context, or more specifically what kind of market regime you aim to exploit. Without a context, testing for any indicator is a waste of time. That being said, there are many ways for you to exit a trade, using a regime filter is one of them. The premise behind it is when the regime change, there's no point of staying for longer. Things branch out from that, for example if you're trading the momentum, paying attention to the volatility and exitting when it dies out is not a bad idea. Most of the case though, I'd recommend using a timed exit, it's pretty much the most widely used exit method for professional algo traders
Great feedback Alberto. Thank you. You make a good point about MkFI. And in fact I tend to concur. I make a point in the video that will be released later today (in about 2 hours time) that MkFI is useful as an alternative indicator of this type for algo traders who struggle to code using more complex techniques that are required by e.g. OBV or MFI divergences so it is good in that respect, but I do make the comment that personally I prefer those methods instead of MkFI. However I wanted to make people aware of it because it will be more suited to some traders.
Thanks, Martyn
@@Darwinexchange
Good point! (and sorry for misspelling your name, Martyn :), I'm not a native english speaker )
if I can bring some value back to you and your followers I'd like to share a simplified solution for MFI/price divergence reading. Especially useful, and in my case effective, for algo trading and EA coding.
It's very simple: using the same code of the standard MFI indicator in MT5, at lines 102 and 104, you can simply remove the volume component from the calculation of the MFI ( removing " volume[index+1] " from the lines above).
This creates a separate indicator that can be plotted in the same MFI window and that will draw a very similar line to the original indicator (might be useful to change color).
The only difference (divergence) between the two indicators will be how much volume is moving the market at any single moment.
So it's Price Movement + Volume for the MFI and Price Movement only to plot this new entry.
I use it to spot when the volume is building up but the price didn't move yet, and vice versa when the price has moved considerably but there's no volume supporting it. This is my mind, simplifies the MFI/price divergence that needs to be read from the price chat at the moment.
In my tests, it's when the two indicators are about 9-10 points of distance (or more) from each other, that you can expect a sudden movement to happen VERY soon.
I hope it helps other people too. It would be very cool to hear what your thoughts are about it Martyn, if you will consider testing it yourself.
@@theCuchuoi1 Spot on! I'm using timed exit to find wherever a premise has an edge or not. But i feel like having some market regime / exit signal would collect some extra juice i'm leaving on the table right now. I'll use your advice and check the volatility (i'm trading lower timeframe trends atm)
@Darwinex about the modified MFI, i've talked to a few traders and they all commented that MFI without volume is RSI. It's not. RSI is calculated on averages and MFI is on weighted price sums. and it's the fact that the new indicator above has the same core calculation of the MFI that makes it, in my opinion a great volume/price divergence spotter