The Market Facilitation Index, was developed by Dr. Bill Williams to reproduce volume and price characteristics in order to make the trade more accurate. 1 point price changing can be shown by BW MFI (Bill Williams Market Facilitation Index). You shouldn’t care about absolute indicator values, whether its changes are important. Bill Williams singles out following processes of MFI and volume changing:
Both MFI and volume go up. The Market Facilitation Index function determines the efficiency of price movement by analyzing the amount that the price is changing for each unit of volume.
It means that more players are joining the market (volume increases), these players make bar development possible. It’s followed by movement commencing and taking higher speed.
Both MFI and volume go down. In this case the participants have lost their interest.
MFI rises while volume gets lower. This situation describes lack of ability for market to support the volume from customers. In this case the price varies according to the speculations of traders, brokers or dealers.
MFI decreases while volume rises. This situation is called the battle between bulls and bears. In this case the volumes being bought or sold are considerable whether the price doesn’t change much as far as the affecting forces are approximately at the same level. It is inevitable that either bulls or bears will win. In most cases the end of this process lets you see whether the trend is going on or it is about to change