MFI MTF ALERTS Trading Guide

The Money Flow Index MTF + Alerts indicator is a volume-weighted oscillator that measures buying and selling pressure to identify overbought and oversold market conditions.

What does the indicator show?

• MFI Line: The oscillating curve tracking the ratio of positive to negative money flow, mapped between 0 and 100.
• Uptrend/Downtrend Zones: Background color shading highlighting the 60-80 zone as bullish and the 20-40 zone as bearish.
• Overbought / Oversold Lines: Threshold levels (default 80 and 20) used to signify stretched market states.
• Cross Markers: Visual dots placed directly over the MFI line whenever it crosses out of the extreme zones.

Key Settings

• Length: The number of periods to look back for calculating money flow.
• Oversold / Overbought: The specific numerical boundaries determining stretched levels.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the data from this indicator to spot reversals and over-extended moves.

1. Value Metrics

The direct outputs from the oscillator.

• MFI — The raw numerical value of the indicator (0-100).

Strategy Example: You can create custom threshold zones using a condition like: MFI > 50 to filter long trades.

2. Crossover Signals

Events triggered when exiting extreme bands.

• Oversold Cross — Triggers true instantly when the MFI line crosses up from below the oversold threshold.
• Overbought Cross — Triggers true instantly when the MFI line crosses down from above the overbought threshold.

Strategy Example: To capture a reversal after a heavy sell-off, use the condition: Oversold Cross is_true.

3. State Conditions

Variables that hold their value while properties remain active.

• Is Oversold / Is Overbought — Remains true as long as the MFI is residing inside the extreme zones.
• Last Cross Was Oversold/Overbought — Memory variables tracking what the previous extreme condition was.