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How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
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How to open an FBS account?
Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
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How to withdraw the money you earned with FBS?
The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Trader Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.
Market Facilitation Index
Let’s continue our study of technical indicators developed by Bill Williams. Market facilitation index (MFI) measures the strength or weakness behind movements of the price. As you can see from its name, the idea of the indicator is to make trading easier for you. Using MFI you will be able to say 3 important things:
- whether the current trend is strong enough to trade it;
- when a new trend may start;
- when it’s better to avoid trading.
To add it to your chart in Metatrader, click “Insert”, choose “Indicators”, "Bill Williams" and then “Market Facilitation Index”.
MFI combines changes in price (range) and volume. Here’s its formula:
MFI = (High – Low) / Volume
The indicator has bars of 4 colors. Each color has a specific meaning and shows how the market responds to a change in volume.
Green. A green bar forms in the situation that both MFI and the volume are up. It means that more and more traders join the market in the current direction. In other words, it points to a strong trend, so you can open trades in line with this trend.
Brown. A brown bar appears when both MFI and the volume decline. It is also called “fade”. It signals that traders are hesitating and don’t want to continue the trend anymore. As a result, it’s not recommended to join the trend. Several brown bars are a sign of the potential reversal of the trend.
Blue. A blue bar forms when MFI increases, but the volume declines. A spike in price may be short-lived a precede a change in the trend. Blue bars appear at the times when newbies enter the trend, but professional traders know that it’s already too dangerous.
Pink. A pink bar, also known as squat, appears when MFI is diminishing, but the volume is growing. It reflects an increase of trading interest and an active fight between buyers and sellers. After one of the sides wins, the price will likely make a big move breaking support or resistance levels. The MFI, however, can’t be used to determine the direction of the breakout.
How to trade using MFI
The colors of MFI bars provide traders with important information about the market. Green or pink bars which correspond to increasing volume usually mean that there’s a trading opportunity. You can also compare the indicator’s bar with the preceding one to see whether conditions for trading become better or worse.
Like many other technical indicators, it’s not the best option to make trades on the basis of MFI alone. Bill Williams advised combining MFI with Fractals and other indicators, for example, Alligator or Moving Average.
2022-03-08 • Updated
Other articles in this section
- Fibonacci fan
- Fibonacci expansion
- How to Use Fibonacci Retracements
- Reversal candlestick patterns
- Continuation candlestick patterns
- How to deal with market noise?
- How to backtest a trading strategy
- Gator Oscillator
- Accelerator Oscillator
- Awesome Oscillator
- Ranges
- Alligator indicator
- Bill Williams theory
- Fractals
- Chart patterns
- Uncovering Gann indicators
- How to create your own trading strategy?
- Candlestick patterns
- Trend trading
- Carry trade
- Swing trading
- Position trading
- Day trading
- Scalping
- Fibonacci tools
- Trader's psychology
- How to identify market reversal
- Japanese Candlesticks
- Trends
