MFI Candle Colors for Overbought and Oversold Conditions

Summary

This indicator colors price candles according to the Money Flow Index (MFI), making the oscillator’s broad market zones visible on a price chart. Teal marks overbought readings, while deep pink marks oversold readings. Pale green indicates MFI above 50 but outside those extreme zones; light pink indicates MFI below 50 and outside them.

The document explains the color mapping but gives no entry or exit rules, parameter settings, performance evidence, or testing results. The colors therefore serve as a visual aid for interpreting MFI, rather than a complete trading strategy. Traders would need to define how the zones inform decisions and assess the indicator alongside other analysis, since the document provides no evidence that any color predicts a price move.

Key ideas

• The indicator maps MFI zones to candle colors for quick visual interpretation.
• Teal denotes an overbought MFI reading, and deep pink denotes an oversold reading.
• Pale green marks MFI above 50 outside the extreme zones.
• Light pink marks MFI below 50 outside the extreme zones.
• The document provides no trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.