EFS for Trading Success
EFS Featured Studies of the Month: The Market Facilitation Index (MFI) and the Triple Exponential Average
The EFS library is full of new and useful strategies you can use for free in eSignal.
This month, we feature a study that measures price movement efficiency and another that identifies oversold and overbought markets.
The Market Facilitation Index (MFI)
The Market Facilitation Index is an indicator that relates price range to volume and measures the efficiency of price movement. Use the indicator to determine if the market is trending.
If the Market Facilitation Index increased, then the market is facilitating trade and is more efficient, implying that the market is trending. If the Market Facilitation Index decreased, then the market is becoming less efficient, which may indicate that a trading range is developing that may be a trend reversal.
Download the Market Facilitation Index EFS study.
Triple Exponential Average
The Triple Exponential Average (TRIX) indicator is an oscillator used to identify oversold and overbought markets and it can also be used as a momentum indicator. As is common with many oscillators, TRIX oscillates around a zero line.
When used as an oscillator, TRIX indicates an overbought market with a positive value while a negative value indicates an oversold market. As a momentum indicator, a positive value suggests that momentum is increasing while a negative value suggests momentum is decreasing.
Download the Triple Exponential Average EFS study.
Resources for EFS
- To access other EFS studies, visit the EFS Library (wait a few seconds for the Most Popular Articles listing to appear).
- For detailed tutorials on EFS, including how to implement EFS studies within eSignal, visit the Help Guides and Tutorials section of the EFS KnowledgeBase.
