Growlife Inc (PHOT)’s MFI Reading Under The Lens
By Lakeland Staff Writer on October 24, 2018
The Money Flow Indicator for Growlife Inc (PHOT) has touched below 30 and has found a place on investor’s radar as it potentially nears the key 20 mark. The MFI indicator is an oscillator which ranges between fixed values of 0 and 100 and as with most oscillators divergences form a major part of trading with the MFI indicator. Traders look for divergence between the indicator and the price action. If the price trends higher and the MFI trends lower (or vice versa), a reversal may be imminent. Market tops tend to occur when the MFI is above 70 or 80. Market bottoms tend to occur when the MFI is below 20.
Investors should however be wary of trading these levels blindly. As the warning goes, an overbought market can remain overbought for an extended period. Strong trends can present a problem for these classic overbought and oversold levels. The MFI can become overbought, and prices can simply continue higher when the uptrend is strong. Conversely, the MFI can become oversold, and prices can simply continue lower when the downtrend persists. Like the RSI, this indicator is best used in conjunction with another indicator as confirmation.
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When undertaking stock analysis, investors and traders may choose to view multiple technical levels in addition to the MFI. Growlife Inc (PHOT) currently has a 14-day Commodity Channel Index (CCI) of -11.23. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Growlife Inc (PHOT) is 26.90. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
