This script was created by using Open Interest instead of Volume in the Market Facilitation Index. Thus, it can make a difference in the Future and CFD Markets. If your financial instrument is not from these markets, that is, if Open Interest is not used, you can choose Volume. You can set "FUTURES" and "OTHERS" from the menu.
If you use the Open Interest (FUTURES) option in the menu on 1W bars and defined Future markets, it will not repaint. This is the best use for Open Interests, as data is extracted from Quandl and CFTC COT reports are published once a week.
Color Change Rules :
In my version :
Green Bars = Green Fade Bars = Orange Fake Bars = Blue Squat Bars = Red
To show the difference in the presentation, both the Futures option using Open Interest and the Others option using Volume were published to compare. You can observe the difference.
Is there a way to plot open interest itself? I would like to be able to plot longs and shorts accumulated values on one chart but I'm having a hard time figuring out how to pull the data.
MHoneygram
⋅
The indicator has bars of four colours. Each colour has a specific meaning and shows how the market responds to a change in volume .
Green. A green bar forms in the situation that both MFI and the volume are up. It means that more and more traders join the market in the current direction. In other words, it points to a strong trend, so you can open trades in line with this trend.
Orange. An orange bar appears when both MFI and the volume decline. It is also called “fade”. It signals that traders are hesitating and don’t want to continue the trend anymore. As a result, it’s not recommended to join the trend. Several orange bars are a sign of the potential reversal of the trend.
Blue. A blue bar forms when MFI increases, but the volume declines. A spike in price may be short-lived a precede a change in the trend. (Fake) Blue bars appear at the times when newbies enter the trend, but professional traders know that it’s already too dangerous.
Red. A red bar, also known as squat, appears when MFI is diminishing, but the volume is growing. It reflects an increase of trading interest and an active fight between buyers and sellers. After one of the sides wins, the price will likely make a big move breaking support or resistance levels. The MFI , however, can’t be used to determine the direction of the breakout.
MHoneygram
⋅
Seems to be no longer working since a couple of weeks.