Market Facilitation Index - Volume Efficiency Gauge (MT4)

Market Facilitation Index (MFI, Bill Williams) measures how efficiently price moves per unit of volume: MFI = (High - Low) / Volume. Paired with volume change, it highlights four classic states that help you decide when to participate, add, or stand aside on MetaTrader 4.

What it shows

• Green - MFI up and Volume up: trend expansion, participation encouraged.
• Fade - MFI down and Volume down: rest phase, expect chop.
• Fake - MFI up and Volume down: price moves on thin volume, beware fakeouts.
• Squat - MFI down and Volume up: fight between sides, watch for break or reversal.
• Optional alerts on state change or new extremes.

Trade ideas

1. Breakout confirmation: require Green during breakout to avoid weak pushes.
2. Fakeout filter: avoid breakouts when Fake dominates.
3. Squat near levels: if price compresses at a key level with Squat, prepare for an impulsive move.
4. Trend adds: add while Green persists and structure holds HH-HL or LL-LH.

Inputs that matter

• Calculation price and Volume source (tick volume in FX).
• Smoothing and lookback for stability.
• Alerts for color change and threshold crosses.

Suggested usage

• M5-M15: filter chop and time breakouts.
• M30-H4: manage adds and exits with regime context.
• Daily+: participation map and risk scaling.

Installation (MT4)

1. Open MetaTrader 4 - File - Open Data Folder.
2. Copy BW MFI.ex4 to MQL4/Indicators.
3. Restart MT4 or refresh Navigator and attach Market Facilitation Index.
4. Adjust inputs - OK.

FAQ

Does it repaint? No on closed bars.
FX volume note? Uses tick volume, which correlates well with real activity on most brokers.
Use in EAs? Yes, via iCustom.
Markets? FX, indices, metals, crypto - anything on MT4.

Disclaimer: Always test on a demo first; risk management matters.