Smoothing MFI with Harmonic Filtering

Summary

This document describes an indicator that smooths the Money Flow Index (MFI) by filtering higher-order harmonics in its time series. It presents the method as applicable to other indicator values as well and claims that the smoothing has no delay. The text provides configurable inputs: the MFI averaging period, volume type, series length, smoothing coefficient, and horizontal shift. It explains that the series length must be a power of two and that the coefficient removes frequency ratios above its set value.

The document gives no chart data, performance tests, or comparison with other smoothing methods, so its claim about avoiding delay is not supported by evidence here. It also notes a parameter limit: the smoothing coefficient cannot exceed the power-of-two range defined by the series length, and setting it to the maximum reproduces the original MFI series. The indicator requires an external library, but the document does not explain its implementation or provide trading rules.

Key ideas

• The indicator smooths MFI values by filtering higher-order harmonics.
• The document says the filtering approach can also be applied to other indicators.
• Series length is configured as a power of two.
• The smoothing coefficient controls which frequency ratios are removed.
• The text claims the method avoids delay but supplies no supporting performance evidence.

Tags

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