TFI

         Use the trade facilitation index question to identify markets which are encouraging trading within a range or markets which are trending toward new ranges.

Example:

         The TFI is over 20 for the day.

Questions from Traders:

         If the TFI is over twenty turnovers for the day, does this indicate market stability? How often will the market overlap yesterday’s longest TPO price?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         We searched for those days where the TFI yielded a turnover rate above 20 for the entire day. This happened about one day in five. We then refined our search to check how often the next day’s trading included the longest TPO price from the previous day (i.e., the day which had a TFI count over 20). In almost 63% of the instances of a TFI over 20, the market traded at the longest TPO price the next day.