Thursday, January 21, 2016 12:01:23 PM
30 minute MFI...Momey Flow Index compared to other indicators...
***Vertical green lines are drawn when MFI crosses it's 6 period average...
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:money_flow_index_mfi
The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure. Created by Gene Quong and Avrum Soudack, MFI is also known as volume-weighted RSI. MFI starts with the typical price for each period. Money flow is positive when the typical price rises (buying pressure) and negative when the typical price declines (selling pressure). A ratio of positive and negative money flow is then plugged into an RSI formula to create an oscillator that moves between zero and one hundred. As a momentum oscillator tied to volume.
The Money Flow Index (MFI) is best suited to identify reversals and price extremes with a variety of signals.
Quong and Soudack identified three basic signals using the Money Flow Index. First, chartists can look for overbought or oversold levels to warn of unsustainable price extremes. Second, bullish and bearish divergence can be used to anticipate trend reversals. Third, failure swings at 80 or 20 can also be used to identify potential price reversals. For this article, the divergences and failure swings will be combined to create one signal group and increase robustness.
MFI is better suited to identify potential reversals with overbought/oversold levels, bullish/bearish divergences and bullish/bearish failure swings. As with all indicators, MFI should not be used by itself. A pure momentum oscillator (...=think stochastics here not RSI...), such as RSI, or pattern analysis can be combined with MFI to increase signal robustness.
30 MINUTE
SwingTraders only...
Look at the "Tick Hooks" as the TICK crosess the one standard deviation line...look at the 3/5/10 averages=triggers...look at when stochastics signals are happening...and ULT is still the leader...
(I also compared MFI to the Accum/Dist line and OBV line= they both are rather useless because they lag so much...)
30 minute MFI...Momey Flow Index
***Vertical green lines are drawn when MFI crosses it's 6 period average...
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:money_flow_index_mfi
The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure. Created by Gene Quong and Avrum Soudack, MFI is also known as volume-weighted RSI. MFI starts with the typical price for each period. Money flow is positive when the typical price rises (buying pressure) and negative when the typical price declines (selling pressure). A ratio of positive and negative money flow is then plugged into an RSI formula to create an oscillator that moves between zero and one hundred. As a momentum oscillator tied to volume.
The Money Flow Index (MFI) is best suited to identify reversals and price extremes with a variety of signals.
Quong and Soudack identified three basic signals using the Money Flow Index. First, chartists can look for overbought or oversold levels to warn of unsustainable price extremes. Second, bullish and bearish divergence can be used to anticipate trend reversals. Third, failure swings at 80 or 20 can also be used to identify potential price reversals. For this article, the divergences and failure swings will be combined to create one signal group and increase robustness.
MFI is better suited to identify potential reversals with overbought/oversold levels, bullish/bearish divergences and bullish/bearish failure swings. As with all indicators, MFI should not be used by itself. A pure momentum oscillator (...=think stochastics here not RSI...), such as RSI, or pattern analysis can be combined with MFI to increase signal robustness.
30 MINUTE
SwingTraders only...
Look at the "Tick Hooks" as the TICK crosess the one standard deviation line...look at the 3/5/10 averages=triggers...look at when stochastics signals are happening...and ULT is still the leader...
(I also compared MFI to the Accum/Dist line and OBV line= they both are rather useless because they lag so much...)
30 minute MFI...Momey Flow Index
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