TheFxTrader
2016-08-18, 02:33 AM
Liquidity Index (MFI (Money flow index
Liquidity Index (MFI) is an oscillator both the price and quantity or volume of transactions is used to measure the pressure the selling and the buying. Coined a / Jane Kong Wa / Avriom Sudak, also known as the name of this indicator weighted RSI. The index starts at a price of each period, and the flow of money to be positive when the price of an upward trend (a buy) pressure and have a negative when it landed price (a buy pressure). Then those positive and negative percentages intervention in the mathematical equation with the RSI order to establish the oscillator moves from 0 to 100 as an indicator linked to the quantity or volume momentum. And that indicator to determine the appropriate reflections and price extremes through several signals.
Sorry Sidi reader, will not grant you admittance to the mathematical equations upon which that indicator, is a complex mathematical operations will no longer be of interest to you. I think the emphasis is on its uses so Snkhtsr the road and go straight to that point.
Use liquidity index MFI
http://image.prntscr.com/image/c976ef01144a4769b8159d9a8b87f33e.png
Because liquidity MFI Index is a modified version of the RSI, it could explain such indication, the main difference is of course the amount added to the equation. Theories quantity or volume of transactions also suggests that the quantity are driving the prices (in terms of the law of supply and demand)
Select both Kong and Sudak three main signals using liquidity MFI indicator.
First, charts traders can look for oversold or overbought and it warned of price extremes emergency.
*Secondly, it can be used to contrast the selling or the buying of the expected repercussions in direction.
*Third, the failure of swing when the line 80 or 20 can also be used to identify potential price impacts. In this lesson can be combined variation and volatility for installation of a collective signal and determine the hardness direction.
Oversold / overbought liquidity index MFI
Oversold and overbought areas can be used to determine the price of emergency extremes. Usually, liquidity MFI index above 80 is considered overbought and below 20 is considered oversold. Altrend forces could pose a problem for those classic areas (peak-Bo and purchase) can be a liquidity index MFI in the overbought (greater than 80) and continues prices to rise when they are strong Altrend, and vice versa can yell MFI index oversold zone (Youngest 20) The prices continue to decline when Altrend powers. It recommended both Kong and Sudak D these areas for more appropriate signals. Move to the top of 90 already be overbought and move to the lowest of the 10 actually be the peak of the sale. Moves above 90 and under 10 is rare, which is likely not the continuation of that region. Admittedly can for the currency pair that is trading for a very long time without access to those areas 10 or 90.
Liquidity Index (MFI) is an oscillator both the price and quantity or volume of transactions is used to measure the pressure the selling and the buying. Coined a / Jane Kong Wa / Avriom Sudak, also known as the name of this indicator weighted RSI. The index starts at a price of each period, and the flow of money to be positive when the price of an upward trend (a buy) pressure and have a negative when it landed price (a buy pressure). Then those positive and negative percentages intervention in the mathematical equation with the RSI order to establish the oscillator moves from 0 to 100 as an indicator linked to the quantity or volume momentum. And that indicator to determine the appropriate reflections and price extremes through several signals.
Sorry Sidi reader, will not grant you admittance to the mathematical equations upon which that indicator, is a complex mathematical operations will no longer be of interest to you. I think the emphasis is on its uses so Snkhtsr the road and go straight to that point.
Use liquidity index MFI
http://image.prntscr.com/image/c976ef01144a4769b8159d9a8b87f33e.png
Because liquidity MFI Index is a modified version of the RSI, it could explain such indication, the main difference is of course the amount added to the equation. Theories quantity or volume of transactions also suggests that the quantity are driving the prices (in terms of the law of supply and demand)
Select both Kong and Sudak three main signals using liquidity MFI indicator.
First, charts traders can look for oversold or overbought and it warned of price extremes emergency.
*Secondly, it can be used to contrast the selling or the buying of the expected repercussions in direction.
*Third, the failure of swing when the line 80 or 20 can also be used to identify potential price impacts. In this lesson can be combined variation and volatility for installation of a collective signal and determine the hardness direction.
Oversold / overbought liquidity index MFI
Oversold and overbought areas can be used to determine the price of emergency extremes. Usually, liquidity MFI index above 80 is considered overbought and below 20 is considered oversold. Altrend forces could pose a problem for those classic areas (peak-Bo and purchase) can be a liquidity index MFI in the overbought (greater than 80) and continues prices to rise when they are strong Altrend, and vice versa can yell MFI index oversold zone (Youngest 20) The prices continue to decline when Altrend powers. It recommended both Kong and Sudak D these areas for more appropriate signals. Move to the top of 90 already be overbought and move to the lowest of the 10 actually be the peak of the sale. Moves above 90 and under 10 is rare, which is likely not the continuation of that region. Admittedly can for the currency pair that is trading for a very long time without access to those areas 10 or 90.