Market Facilitation Index indicator

Green. A green bar forms when both the Market Facilitation Index (MFI) and volume rise. This means more and more traders are joining the market in the current direction. In other words, it points to a strong trend, and you can open trades in its direction.

Gray. A gray bar appears when both MFI and volume fall. This state is also called a "fade". It signals that traders are doubtful and do not want to continue the move with the trend. So joining the current trend is not recommended. Several gray bars in a row can be a sign of a possible reversal.

Orange. An orange bar appears when MFI rises but volume falls. The price spike in this case may be short-lived and may precede a trend change. Orange bars often appear when inexperienced traders enter a trend while professionals already see that the situation is becoming risky.

Blue. A blue bar, also known as a "squat", appears when MFI falls but volume increases. It reflects growing interest in trading and an active fight between buyers and sellers. Once one side wins, the price will most likely make a sharp move, breaking through support or resistance levels. However, MFI does not let you determine the direction of this breakout in advance.