Combining MFI and SMI with Multi-Timeframe Views and Divergence
Summary
This indicator applies Stochastic Momentum Index calculations to Money Flow Index data, combining price-range momentum with a measure that uses price and volume. It provides separate settings for the oscillator and its signal line, including their sources, lookback lengths, smoothing types, and display themes. Multi-timeframe options allow calculation from a fixed higher timeframe or a multiple of the chart timeframe, with a choice between smoothed output and stepped higher-timeframe values.
The script also includes regular and hidden bullish or bearish divergence detection based on oscillator and price swing highs and lows. These features can help users inspect momentum and possible trend continuation or reversal conditions, but the document gives no trading rules, performance results, or empirical validation. Repainting is an explicit setting, and higher-timeframe values may behave differently as bars form; users need to account for that when interpreting historical signals. The extensive configuration changes how the display is calculated and presented, but does not establish a standalone trading edge.
Key ideas
- The indicator computes an SMI-style oscillator from MFI data to combine momentum with price-volume information.
- Users can configure oscillator and signal smoothing, input lengths, and source series.
- Higher-timeframe calculations can use a fixed interval or a multiple of the chart timeframe.
- Regular and hidden divergence conditions compare oscillator swings with corresponding price swings.
- The script offers a repainting choice but provides no evidence that its signals are profitable.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.