OPEN-SOURCE SCRIPT
Updated Dynamic Threshold Money Flow Index
i thought this script was a clever idea, but the more i tried to improve it, the worse it seemed to get.
the idea behind this script was to build a context around a Money Flow Index that changes based on market conditions.
the width of the channel is controlled by a combination of the choppiness index and an inverted, normalized, absolute value of the ROC. when the market begins trending, the channel narrows, making the MFI more likely to break out of the channel in the direction of the emerging trend. as the market becomes more choppy and the trend diminishes, the channel widens, recapturing the MFI.
my initial hopes for this script was that the context-based thresholds would spare the user from choppy markets, but perhaps i need to make the channel non-linear.
the idea behind this script was to build a context around a Money Flow Index that changes based on market conditions.
the width of the channel is controlled by a combination of the choppiness index and an inverted, normalized, absolute value of the ROC. when the market begins trending, the channel narrows, making the MFI more likely to break out of the channel in the direction of the emerging trend. as the market becomes more choppy and the trend diminishes, the channel widens, recapturing the MFI.
my initial hopes for this script was that the context-based thresholds would spare the user from choppy markets, but perhaps i need to make the channel non-linear.
Release Notes
updating pictureOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.