1. Market Facilitation Index (MFI)
The Market Facilitation Index (MFI) is a measure of how much the market is willing to move the price. It is a more truthful measure of market action than any stochastic, RSI (Relative Strength Index) or any other of the momentum indicators. It uses a simple formula which is High - Low / Volume.
What Does the MFI Indicator Tell You?
With this indicator, you do not look at the values of the indicator, but instead the price changes at any given moment.
- Green MFI Bar - tell us the market is on the move.
- Brown MFI Bar - this is known as a fade and the markets have lost interest in moving any further.
- Blue MFI Bar - this is known as a fake as the markets move progressively, but it is not supported by volume.
- Pink MFI Bar - this is known as a squat and it will appear at the end of a trend, this is the strongest potential money maker.
2. Gator Oscillator
The Gator Oscillator is one of several well-known indicators developed by the celebrated trader and analyst Bill Williams. It is intended to make it easier for you to recognise when a market is trending.
The cTrader Gator Oscillator histogram value that is above 0 shows the absolute difference between blue and red lines of the standard Alligator indicator, while a histogram value below 0 will show the absolute difference between red and green lines. this type of oscillator will help to visualise the expected changes in the trends.
- A green bar will appear when its value is higher than the value of the previous bar.
- A red bar will appear when its value is lower than the value of the previous bar.
- Gator Eats - when both of the bars are green
- Gator Awakens - this occurs after sleeping and one bar is red and the other green.
- Gator Fills Out - after the gator has eaten one of the bars turn red.
- Gator Sleeps - when both of the bars are red.
The Fractals Indicator was introduced by Bill Williams to be as simple and versatile as possible, it can be used as a stand-alone indicator or in combination with other Forex indicators. For the Fractal to be formed there should be a series of 5-consecutive bars where the centre bar is the highest preceded and followed by the lower two adjacent bars on each side.
Buy fractals are formed at the top of the price wave with the Highest High in the middle and two lower highs on each side.
Sell fractals are formed at the bottom of the price wave with the Lowest Low in the middle and two Higher Lows on each side.
4. Alligator Indicator
The cTrader Alligator indicator helps to define the behaviour and lack of a trend as well as its direction, for an uptrend to be true the 3 lines of the indicator, Jaws, Teeth and Lips of the indicator must be in the correct order. The image below shows it being used with the Gator Oscillator, when used together the trend can be identified more accurately.
5. Awesome Oscillator
The Bill Williams Awesome Oscillator strategy is a momentum strategy that takes advantage of the most immediate trend and it will only give you entry signals when the momentum is confirming the price action shift.
The Bill Williams Awesome Oscillator strategy can be applied across different markets; be it stocks, commodities, indices, and Forex currencies. The preferred time frame is the daily time frame.