Forex Indicators | Money Flow Index Trading Strategy
Forex Indicators – Can money flow index strategy make you a profitable trader.
How to trade it and make more money.
What money flow index trading strategy is the right for anyone.
And how to use this money flow index indicator properly without blowing up our accounts.
The money flow index or MFI is an oscillator that is very popular
It shows the overbought or oversold conditions of Stock or Forex
pair using the price and volume.
This indicator is very similar to the RSI.
RSI indicator calculates its values based on the price data alone.
But the MFI takes both price and volume data into consideration.
MFI an indicator can also be used to spot divergences on trading view this is what the money flow index looks like is very similar to the RSI indicator.
By default, the RSI indicator comes with 30 and 70 oversold and overbought zones.
And MFI indicator comes with 80 and 20 overbought and oversold zones.
Furthermore, the time period must be 14 candles.
What the money flow index tells.
When the MFI indicator goes above the 80 level then the price is considered to be in an overbought zone.
Similarly, if the MFI indicator goes below the 20 level then the price is considered to be in an oversold zone.
Many traders use these overbought and oversold zones as an entry signal generator.
When the price goes above the 80 level then many traders will look for opportunities to sell.
And they also look for a candlestick pattern that indicates a short signal.
Similarly, when the price goes below the 20 level many traders will look for opportunities to buy.
Traders also look for some kind of candlestick pattern that indicates a possible