MFI Strategy

Aug 16, 2022

This indicator is based on MFI25 and EMA55 and optimized for 1 day graph and slow swing trading to show large moves and tops and bottoms.
You can change the MFI and EMA settings according to your style of trading.
The change from green to red and visa versa are the buying and selling moments.
The yellow line indicates that a change is possibly comming or not really sollid, so with yellow it's your own feeling that is leading.
Always combine this graph with others. F.i. a RSI14 to look for divergenses.
Ps. I'm not a professional or very experienced trader, but this indicator works perfect for me.
Succes.

Aug 25, 2022

Release Notes

I changed the standard MFI and EMA settings that fit better for my style of trading.
MFI changed from 25 to 34 (this results in less but more reliable buy/sell alerts and makes it more comfortable for me).
EMA changed from 55 to 89 (this indicates the trend better. It's the carrier for the MFI line and makes it more stable and predictable).

Sep 7, 2022

Release Notes

MFI Strategy

The indicators:
The MFI Strategy is made up of MFI and EMA and is fixed to day chart.
It is intended for reasonably safe and relaxed swing trading (the indicator reacts with a delay and will not indicate the very best take-profit or buy signal).
MFI indicates the strength and direction, EMA indicates the major trend.
The EMA line is the carrier for the MFI oscillator that moves around the stable EMA line.
The set values ​​for MFI-slow (35), MFI-fast (25) and EMA (65) work best for me.

The 5 signals:
MFI slow:
Red/green line color (below/above EMA) indicates the direction (< or > MFI50).
MFI power:
Blurred red/green fill color means a neutral value (MFI40 - MFI60).
Medium red/green fill color means a strong value (MFI20 - MFI40) (60-80).
Bright red/green fill color means oversold/overbougth (MFI<20 or MFI>80).
MFI-fast:
Color change of the MFI-slow line to red/green before an intersection of the MFI-slow and EMA lines indicates that the MFI-fast has flipped with strong values ​​(<40 or >60).
EMA trend:
Red/green line color signifies a decline/rise in the trend.
EMA strength:
Thin line means weak trend, thick line means strong trend.

Alert:
Set an alert to signal when MFI and EMA cross.
Set the visibility of the indicator to day (and possibly week).

My personal strategy:
MFI slow crosses EMA trend: 40%
EMA trend changes along in new direction: extra 40%
MFI power is minimal average: additional 10%
EMA strength is strong in new direction: extra 10%

2. To substantiate the buy/sell signals of the MFI strategy:
MFI strength weak, oversold/overbougth and MFI fast for potential turnaround.
RSI14 for identifying divergences.
Support, resistance lines, trendlines and breakout patterns.

Oct 30, 2023

Release Notes

I changed EMA to ZEMA and added a longer trend ZEMA for additional information.