Money Flow Index | Trading Divergences and Overbought/Oversold
This episode considers two methods often associated with the Money Flow Index volume-based indicator: Overbought/Oversold states and Divergences.
Technical Indicators only provide any intelligence about the financial markets if you know how to interpret them, and the Money Flow Index is no exception. The explanation provided explains how to exploit each of these to help predict what might happen next in the price action, underpinned by a probability-based approach.
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This is Episode 76 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 16 of the new 'Volume Data' mini-series.
Video Contents:
00:00 Introduction
02:12 Overbought / Oversold Signals
05:46 Divergence Signals
09:16 Summary and Conclusions
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: www.darwinex.com/legal/risk-d...
Пікірлер: 20
This video was just what i needed. Thanks for sharing !
Clearly explained. Thanks.
I learnt something new today about divergences
Very thorough and detailed yet concise! Beautifully done. But still, the volume based indies need a deeper dive for the minority of the traders who know the real value or such indies. The inverse fisher of an oscillating version of obv for example is nearly a perfect volume indicator. Kindly continue this series! Big thanks.
@antoniomachado8782
5 ай бұрын
Hi, could you provide a link or some insight on how to download that indicator? It could be very useful. Thank you!
Thanks!
Thanks a lot it was insightful
Nice informative video thank you
Epic mate
Thx for another excellent video Martyn! Which of these volume indicators, if any, can be used for forex trading?
Martyn, thank you. It hasn't helped me with my algo but it has increased my knowledge (at least until a new piece of knowledge comes along to displace it anyway). I saw something about MACD divergence a few years ago and decided to bet against the trend (not clever I realise now). So, price went up and so did the MACD and suddenly there was no divergence. The problem is the hard right edge of the chart can differ from when it's in the middle of the chart. Do you have any whether the same is true for MFI please ?
Thanks for the explainer. I'm still undecided whether to use this or not. I see divergences on the charts you use here that don't bear out at all, so I keep going back and forth on whether to include this. I have a quesiton though. What are the best periods to use? 14 seems to be the most popular when viewing a daily chart but are different setting for weekly, 1 hourly and 4 hourly or is 14 still the best setting?
great! which timeframe do you look for divergences? cheers mate!
Thank u so much. have any video for cot report. define with money flow index or other.
Hah, glad I watched to the end, was just about to ask how this compares to OBV or just A/D?
thanks - good tutorial - but you do not really know these indicator ex ante, do you? and if a price increase with weak volume suggest price fall short after, you may just use price and volume as indicators.
Do you have hedge funds for clients money to administrate.
How to trade divergences in algorithms? I have no idea how to code divergences into the algos....
rsi or mfi divergence?
Would you examine volume profile ?