Letit_Trade

MFI indicator and how to work with it

Educacional
Letit_Trade Atualizado   
INDEX:BTCUSD   Bitcoin
Hello everyone, letit is in touch and today we want to tell you about one very cool indicator.

MFI - (money flow index) is a technical indicator designed to demonstrate the intensity with which money is invested in a security and withdrawn from it by analyzing trading volumes and the ratio of typical prices of periods.

it shows how attractive the asset looks. That is, the degree of intensity of investing money in it. At the same time, only the dynamics of the indicator is important, its value at a particular moment in itself does not matter much.

That is, speaking in simple terms, there is a similarity with rsi, but here it is not so strict in terms of divergences and convergences.
The indicator simply shows the discrepancy between the cash flow and the price of an asset.

Now on bitcoin we can see this discrepancy.
We had growth when money left the asset - this is a signal for a fall.
Therefore, the team and I expect the asset to fall to the area of ​​21500-20200, and from there it will turn around.
Below are some more examples of discrepancies.

If you liked the article, then put a reaction and write a comment - it will help us a lot.


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