MFI Slowdown Signals for Potential Price Reversals

Summary

This indicator uses the Money Flow Index (MFI) to flag possible price reversals. Its premise is that price may turn after the MFI’s rate of change slows and reverses, particularly when the fast MFI is in an overbought or oversold area. The indicator can mark detected areas with chart arrows and issue alerts, emails, or mobile notifications.

Settings include the MFI period, volume input, upper and lower threshold levels, and whether slowdown detection is enabled. With slowdown detection disabled, it instead marks MFI threshold crossings. The document provides configuration examples and describes the indicator’s intended behavior, but gives no backtest, performance statistics, or evidence that the signals predict reversals reliably. The proposed relationship is a trading hypothesis; threshold touches and slowing indicator movement alone do not establish that a reversal will follow.

Key ideas

• The indicator looks for a slowdown and reversal in fast MFI near overbought or oversold levels.
• It can display potential signal areas as arrows on a chart.
• Slowdown detection can be disabled to show threshold exceedances instead.
• Alerts can be configured for sound, email, or mobile notifications.
• The document gives no performance evidence for the reversal premise.

Tags

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