The MarketFI is calculated by the range of a given bar, divided by that bar?s volume.
The MarketFI indicator determines the efficiency of price movement in relation to its bar volume or trade size. It aids the trader to determine a change in the trend and also the market bias. A market is considered to be more efficient if a small increase in tick volume accounts for a large movement in the trading range. Less efficiency is ascribed to the market if a small trading range is accompanied by a large tick volume. In other words, if it takes 2 ticks to move the market $10.00, a market where 7 ticks are needed to equal a $10.00 move is considered less efficient.

A higher value of the MarketFI indicator signifies a more efficient market and signals significant move in either direction. As the trend moves in a given direction, the MarketFI indicator helps determine periods in the market that provide more or less trading opportunities.

The MarketFI indicator is not currently applicable for Intraday charts and will never be applicable for Tick charts, due to the nature of the data.

Formula: