MFI Top/Bottom [sinyalbak.com]

há 9 horas

MFI Top/Bottom with Bollinger Bands Indicator
Overview
This indicator combines the Money Flow Index (MFI) with Bollinger Bands to identify potential overbought and oversold conditions in the market. It offers a unique approach by applying Bollinger Bands to the MFI itself, providing additional context for divergence and extreme readings.
Features

Combined MFI and Bollinger Bands analysis
Optional RSI display
Customizable overbought/oversold zones
Visual highlighting of extreme conditions
Signal detection for potential reversals
Flexible visualization options

Indicator Components
1. Main Indicators

Money Flow Index (MFI): A momentum indicator that incorporates both price and volume
Relative Strength Index (RSI): Optional, can be displayed instead of or alongside MFI
Bollinger Bands: Applied to either MFI or RSI values

2. Visual Elements

Green line: MFI
Maroon line: RSI (when enabled)
Blue bands: Bollinger Bands
Yellow circles: Signals when MFI crosses Bollinger Bands
Colored zones: Highlighted overbought/oversold areas

3. Signal Zones

Overbought zone: 70-75
Oversold zone: 25-30
Middle line: 50

How to Use
1. Basic Setup

Set your preferred lookback period (default: 14)
Adjust the Bollinger Bands multiplier (default: 2.0)
Choose whether to display MFI, RSI, or both

2. Signal Interpretation

Overbought Signals: When MFI enters the 70-75 zone
Oversold Signals: When MFI enters the 25-30 zone
Strong Signals: When MFI crosses outside Bollinger Bands
Divergence: Watch for price/indicator divergence at extremes

3. Best Practices

Use in conjunction with other indicators for confirmation
Pay attention to overall trend direction
Look for divergences at extreme levels
Consider volume patterns alongside indicator signals

Customization Options
Input Parameters

Length: Adjusts the calculation period
Multiplier: Controls Bollinger Bands width
Display options for MFI/RSI
Zone highlighting toggles

Visual Settings

Adjustable line colors and styles
Customizable zone highlighting
Optional signal visualization

Tips for Trading

Entry Signals

Look for oversold conditions with bullish price action
Watch for overbought conditions with bearish price action
Confirm with Bollinger Band crosses


Exit Signals

Monitor extreme readings for potential reversals
Use middle line (50) crosses for trend changes
Watch for divergence between price and indicator


Risk Management

Don't rely solely on indicator signals
Consider using multiple timeframes
Set appropriate stop-loss levels



Technical Notes

Calculation based on HLC3 price
Volume-weighted momentum measurement
Adaptive bands based on standard deviation
Signal generation uses both static levels and dynamic bands

Disclaimer
This indicator is for educational and informational purposes only. Always conduct your own analysis and use proper risk management techniques when trading.

há 35 minutos

Notas de Lançamento

Modified the highlight zones in the MFI indicator to show distinct coloring:

Green highlight only appears when MFI is above 70 (overbought)
Red highlight only appears when MFI is below 30 (oversold)
Changed from a single b_color variable to separate b_color_top and b_color_bottom
Removed the previous combined color logic that could show both colors simultaneously