Description

• Founded by Bill Williams, MktFacIdx measures price movement per unit or share
• It is a very simple study and practically useful only if used along with other methods of analysis
• It is built to confirm price actions to filter false breakouts or confirming indication reversals
• High indicator value with high volume is a positive sign

Interpretation

• Price rise with rising volume and MktFacIdx is a signal with strong uptrend for long positions
• Price rise with rising MktFacIdx but with low volume is a false uptrend signal
• Price fall with falling MktFacIdx and low volume is the signal of a stock with fading interest
• Price fall with rising volume but narrowing MktFacIdx indicates that reversal is due

Default Parameters Used/Inputs

• High Line
• Low Line
• Qty Line
• Period

Returns/Output

MktFacIdx values of stock for the specified period

Formula

MktFacIdx = High – Low / Volume