Fade

Fade uses MFI (Market Facilitation Index). MFI is the range of the bar divided by tick volume. MFI tells us how well the volume (outside paper) is moving the price. This is a key psychological concept.

MFI is used inside the affected DTTB indicators. The indicators take a look at volume twice; once raw and a second time as the denominator in the MFI. High volume comes from outside paper. Low volume indicates a lack of outside paper. Outside paper is the only thing that can sustain a significant move.

Fade is lower volume and lower MFI than the previous bar. This means there is less interest. The market is not facilitating trade and the outside paper is drying up. Sometimes this occurs at a reversal. Typical reversal combinations are a strong fake; then a fade or a green; then a fade.