civilKitten60243

Money Flow Index: MFI analyses tutorial with 4H candlesticks

Education
BINANCE:BTCUSDT   Bitcoin / TetherUS
MFI or Money Flow Index as a strategy is quite similar to RSI or Relative Strength Index . The key differentiator for MFI is the consideration of volume .

  • Money Flow Index oscillator:
  • MFI uses both price and volume to measure buying and selling pressure.
  • MFI oscillates between 0 to 100.
  • Intuitively, the volume-weighted feature makes MFI a comparatively better 'Lead' indicator than the RSI .
  • Most reversals can be identified and acted upon best through the Money Flow Index oscillator.

MFI above 80 indicates Overbought territory. It suggests that the underlying asset is driven by a buying pressure.
MFI below 20 indicates Oversold territory. It indicates a selling pressure.


MFI crossing over 20 gives a BUY signal.

MFI crossing down the 80 mark gives a SELL signal.

Stop loss should be used as a precautionary measure.
Trailing stop loss can be used to let the profits ride, while ensuring safety in case of trend reversals.


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Comments and feedback would push me to come out with better analyses. Thank you!

Comments

MFI crossed below 80 but price goes up. SL hit.
+3 Reply
you are showing something that maybe its bad for people.. overbought but is going up and up.
+2 Reply
@CoinPlusTrader this guy should have taught how newbies what are regular and hidden divergence, if the money flow index is opposing against the price action in "projecting" bullish /bearish trends. This tutorial is basically misleading.
+1 Reply
CoinPlusTrader FarhatBmdhj
Reply
civilKitten60243 FarhatBmdhj
@FarhatBmdhj, would keep this in mind. thanks for pointing out
Reply
FarhatBmdhj civilKitten60243
@civilKitten60243, hey no worries man. i started as a newbie too. just that people are not educated on the divergence part then they make a silly trade and RIP to porfolio. I wish you success in your trading performance.
Reply
No I think that is the volume candle spiking higher making it look as though the stop has been hit but it hasn’t, I could be wrong though. lol
+1 Reply
very good 👏👏
+1 Reply
Thank you so much
+1 Reply
Kindly request for Interpretation of the light Green and light red bar please - I do understand what to look for as explained when MFI crosses over 20 gives a buy signal and MFI crosses below 80 mark is a sell signal.
+1 Reply
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