OPEN-SOURCE SCRIPT
MFI Divergence Indicator
Actualizado
Our Developer Malin converted the built-in RSI divergence indicator to MFI (Money Flow Index).
How to apply?
Notice 1: MFI, unlike the RSI, incorporates volume. It thus is an indicator of a higher precision when it comes to finding the the moment to sell - or - the moment to enter.
Notice 2: In Ranging Markets MFI (and RSI) is a solid momentum indicator to buy or sell. The asset displayed shows a slight markdown. Thus, we are looking primarily for short positions. Once can tell by us omitting the first 2 hidden bearish divergence signals and then entering the market.
Notice 3: Divergences depend on pivot points. The drawback with pivot points is that it is a lagging indication of a potential reversal. The more time (bars) one takes to confirm a reversal the less profitable is the trade - but less risky. In the charts one can tell that we enter the market 5 bars later. Usually that is not the tip of the reversal.
Notice 4: One must adapt the left and right periods of the indicator to risk/reward ratio, length of swing / frequency modulation and volatility of the price action.
Credits: Credits go to the Tradingview Team for delivering the original code. And Malin for the conversion. Please keep the copy right as a courtesy.
How to apply?
Notice 1: MFI, unlike the RSI, incorporates volume. It thus is an indicator of a higher precision when it comes to finding the the moment to sell - or - the moment to enter.
Notice 2: In Ranging Markets MFI (and RSI) is a solid momentum indicator to buy or sell. The asset displayed shows a slight markdown. Thus, we are looking primarily for short positions. Once can tell by us omitting the first 2 hidden bearish divergence signals and then entering the market.
Notice 3: Divergences depend on pivot points. The drawback with pivot points is that it is a lagging indication of a potential reversal. The more time (bars) one takes to confirm a reversal the less profitable is the trade - but less risky. In the charts one can tell that we enter the market 5 bars later. Usually that is not the tip of the reversal.
Notice 4: One must adapt the left and right periods of the indicator to risk/reward ratio, length of swing / frequency modulation and volatility of the price action.
Credits: Credits go to the Tradingview Team for delivering the original code. And Malin for the conversion. Please keep the copy right as a courtesy.
Notas de prensa
We added the RSI in light blue to the indicator to understand the difference better. Notice, a big difference of the MFI an RSI is indicating that there is a considerable difference of price and the volume that is backing up the direction of the trend. We will indicate significant differences in future versions.Notas de prensa
Indicating a MFI/RSI-difference of 20% on the chart.Notas de prensa
Indicating any difference of the MFI and RSI. No matter if positive or negative.Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el autor de este script lo ha publicado en código abierto, permitiendo que otros traders puedan entenderlo y verificarlo. ¡Olé por el autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la reutilización de este código en la publicación se rige por las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.
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Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.