Custom Formula Collection

Market Facilitation Index Expert Advisor

In the August 1996 Stocks &
Commodities
, an article by Thom Hartle titled "The Market Facilitation Index" showed how to color bars to identify chart patterns based on changes in the market facilitation index and volume. Here is how to do this in MetaStock 6.0's new Expert Advisor.

The first step is to create a new expert by choosing Expert Advisor from MetaStock's Tool menu, and then choose New from the Expert Advisor. Name the expert "Market Facilitation Index", enter any notes you like and then click on the Highlights tab. Enter the following Highlights by choosing New, the color and then entering the following formulas:

Green Bar (Green Bar)
ROC((H-L)/V,1,$) >
0 AND ROC(V,1,$) >
0

Fade Bar (Blue Bar)
ROC((H-L)/V,1,$) <
0 AND ROC(V,1,$) <
0

Fake Bar (Dk Gray Bar)
ROC((H-L)/V,1,$) >
0 AND ROC(V,1,$) <
0

Squat Bar (Red Bar)
ROC((H-L)/V,1,$) <
0 AND ROC(V,1,$) >
0

After you have entered the four highlights click OK to finish editing the expert's properties. You can now right-click on the heading or background of any chart. Next select Expert Advisor and then Attach from the Chart shortcut menu. Attach the market facilitation index expert, and it will highlight the four market facilitation patterns that were discussed in Hartle's article. Note:You can save a chart as a template with this expert attached, and then any time you apply the template to a chart the market facilitation index expert will automatically attach to the chart.

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