standard. Money Flow Index 100 - (100 / (1 Money Ratio). If the current typical price is more than previous the stream is positive (Positive Money Flow) if the typical price falls by negative (Negative Money Flow). Transactions are made in the case of breakthrough by lines of the indicator of the line of a trend after turning figures, StopLoss behind a local extremum. The active trailing with a step of 5-10 points is recommended for TakeProfit. Contents, mathematics and parameters, the use in trade, strategy with use of the indicator. Several practical notes, the MFI indicator gives the chance to see visually the current distribution of forces between sellers and buyers and also changes of this situation in the near future. Money Flow is the basic concept when calculating which is defined by the product of the typical price and the trading volume for the period: Money Flow(i) Tp(i Volume(i). It is developed as a part of the Trade Chaos theory of Bill Williams, compares positive and negative cash flows on an asset for the chosen period.
Money flow index forex
Money Flow (Typical Price) x (Volume). Sale: the MFI line crosses SMA from top to down higher than the level. StopLoss on the next max/min, but not less than 10 points. Sale: SMA(300) is directed down (the descending trend «synthetic» RSI was developed up lower than the level. The emergence of standard patterns on the line of the indicator advances for several periods a formation of similar figures on the price chart. The indicator is the oscillator line in an additional window, with traditional levels of overbought / oversold zones (70/30 or 80/20). The Money flow indicator is a steadier tool than, for example, RSI, but it is worth to remember that it was initially developed for the stock market where there is much more information for prediction. Money Flow Index typical oscillator, therefore, its signals at the beginning of the strong trend can «hang up» for a long time in critical zones. Extreme values of the combined indicator appear strictly after contact of critical levels. Time frame M15, M30. According to the author, it allows seeing what speed money «enters and leaves the market». Usually, values are calculated for 14 bars investir en crypto monnaie sans taux de change (it is recommended by Williams the calculation period is less, the line is more volatile.