OPEN-SOURCE SCRIPT
MFI Divergence Indicator by Allen
# MFI Divergence Indicator
A powerful divergence indicator based on the Money Flow Index (MFI) that identifies four types of divergences: Regular Bullish, Hidden Bullish, Regular Bearish, and Hidden Bearish divergences.
### Key Features
• Automatic detection and display of divergences between MFI and price
• Independent control for displaying each type of divergence
• Adjustable lookback periods and range settings
• Built-in alerts functionality
• Clear visual markers and labels
### Types of Divergences
1. Regular Bullish: Price makes lower lows while MFI makes higher lows
2. Hidden Bullish: Price makes higher lows while MFI makes lower lows
3. Regular Bearish: Price makes higher highs while MFI makes lower highs
4. Hidden Bearish: Price makes lower highs while MFI makes higher highs
### Parameters
• MFI Period: Calculation period for the Money Flow Index
• Pivot Lookback Left/Right: Periods to look for pivot points
• Max/Min of Lookback Range: Maximum/Minimum range for divergence detection
• Plot options: Toggle visibility for different types of divergences
### Usage Guidelines
• Regular divergences are typically used to predict trend reversals
• Hidden divergences are often used to predict trend continuation
• Best used in conjunction with other technical indicators
• Set up alerts to monitor for new divergence formations
### Trading Tips
• Use regular divergences for potential trend reversal entries
• Use hidden divergences for trend continuation trades
• Combine with support/resistance levels for better entry points
• Consider using multiple timeframe analysis for confirmation
• Wait for price action confirmation before taking trades
### Important Notes
This indicator is for reference purposes only. Always combine with other technical analysis tools and fundamental analysis for trading decisions. Back-testing and demo trading are recommended before live trading.
If you find this indicator helpful, don't forget to hit the like button!
#TechnicalAnalysis #Divergence #MFI #TrendTrading #TradingSignals
A powerful divergence indicator based on the Money Flow Index (MFI) that identifies four types of divergences: Regular Bullish, Hidden Bullish, Regular Bearish, and Hidden Bearish divergences.
### Key Features
• Automatic detection and display of divergences between MFI and price
• Independent control for displaying each type of divergence
• Adjustable lookback periods and range settings
• Built-in alerts functionality
• Clear visual markers and labels
### Types of Divergences
1. Regular Bullish: Price makes lower lows while MFI makes higher lows
2. Hidden Bullish: Price makes higher lows while MFI makes lower lows
3. Regular Bearish: Price makes higher highs while MFI makes lower highs
4. Hidden Bearish: Price makes lower highs while MFI makes higher highs
### Parameters
• MFI Period: Calculation period for the Money Flow Index
• Pivot Lookback Left/Right: Periods to look for pivot points
• Max/Min of Lookback Range: Maximum/Minimum range for divergence detection
• Plot options: Toggle visibility for different types of divergences
### Usage Guidelines
• Regular divergences are typically used to predict trend reversals
• Hidden divergences are often used to predict trend continuation
• Best used in conjunction with other technical indicators
• Set up alerts to monitor for new divergence formations
### Trading Tips
• Use regular divergences for potential trend reversal entries
• Use hidden divergences for trend continuation trades
• Combine with support/resistance levels for better entry points
• Consider using multiple timeframe analysis for confirmation
• Wait for price action confirmation before taking trades
### Important Notes
This indicator is for reference purposes only. Always combine with other technical analysis tools and fundamental analysis for trading decisions. Back-testing and demo trading are recommended before live trading.
If you find this indicator helpful, don't forget to hit the like button!
#TechnicalAnalysis #Divergence #MFI #TrendTrading #TradingSignals
Open-source Skript
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