BITCOIN SCALP STRATEGY: MTF Money Flow Index + VORTEX
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So this is a TWO part Multi Timeframe trade system used together in a meaningful way to enter intraday LONG and SHORT positions. Currently i'm seeing success on the M3 - M5 - M10 and M15 timeframes. The strategy goes like this:
[CHART A] TIMEFRAME: H4 INDICATORS: 200 period SMA 20 period VORTEX
This chart determines the current intraday trend, if we are BELOW the 200SMA and the VORTEX is signalling a BEARISH trend, then we only look for SELL's on chart B. VICE VERA
[CHART B] TIMEFRAME: M15 INDICATORS: MFI (LENGTH = 1 , UPPER = 65 , LOWER = 35) EMA (LENGTH = 4) *note: this ema is applied to the MFI indicator itself, not the chart. This is what we will use to signal our entries INVERSE FISHER WMA RSI and ROC of Vortex (RSI Main Period = 6 , RSI Smooth Period = 2 ) *note: we are only using the RSI plot from this indicator so turn off the first two plots and set the style to column, this will make it easier to use
anndddd..... this is how it works: Chart A is signalling the intraday trend is bearish, so we are only looking for sell orders on Chart B. When the pink signal line on our MFI indicator crosses down below the lower 35 line and we see a subsequent red block light up on our inverse fisher indicator we enter a sell. Now is where our inverse fisher indicator plays it's role by smoothing out alot of the chop and false signals given by the mfi. Once we see a green block, we exit the trade. I like to use this strategy with the Heikin Ashi candlesticks as it helps to further smooth out trends and spot exit points.
If anyone out there knows how to write pine script please reach out as i'd love to be able to back test this strategy further. Happy trading, let me know your results!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.