Plotting the Money Flow Index with a Smoothed Average and Channel

Summary

The document describes an indicator that places the Money Flow Index in the main chart window alongside a smoothed moving average. It also displays a channel whose boundaries are based on a configurable deviation, with default overbought and oversold reference levels. Inputs allow the user to set the MFI period and volume type, choose a smoothing method and averaging depth, select the applied price, adjust channel width, and shift the plotted indicator horizontally.

This is a visualization and configuration description, not a tested trading strategy. It gives no historical results, entry or exit rules, or evidence that MFI crossings, channel boundaries, or the stated reference levels predict returns. The listed defaults are settings rather than recommendations. The indicator also depends on an external smoothing library, and the document points to background material about its averaging methods without explaining them here. Users would need to understand those calculations and test the display in their own market and timeframe before drawing conclusions.

Key ideas

• The indicator overlays the Money Flow Index and a smoothed average in the main chart window.
• A deviation setting controls the width of the channel around the plotted values.
• Inputs configure the MFI period, volume source, smoothing method, applied price, and plot shift.
• Overbought and oversold levels are shown as configurable references, not validated trading signals.
• The description supplies no backtest or evidence of predictive performance.

Tags

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