Money Flow Index - MFI

🎯 Overview
This is an advanced Money Flow Index - MFI indicator that combines volume-weighted momentum analysis with dynamic moving average filtering. Unlike basic MFI implementations, this version features gradient overbought/oversold zones, multiple color themes, and a clear signal dashboard for precise money flow identification.

🧩 Core Components
1. ⚙️ Technical Foundation
📊 Primary Calculation: Uses TradingView's built-in ta.mfi() function which incorporates both price and volume data

📈 Dual Analysis Components:

MFI Line: Volume-weighted momentum oscillator

MA Filter: Customizable moving average acting as dynamic signal line

Threshold Zones: Gradient fills for overbought and oversold conditions

⚡ Volume Integration: Unique ability to combine price action with trading volume for more reliable signals

2. 🎛️ Configuration Parameters
📏 MFI Length: Default 14 periods (standard setting)

🔄 MA Filter Settings:

Length: Customizable (default 365 periods)

Type: 6 options available (EMA, SMA, RMA, WMA, VWMA, HMA)

🎨 Color Themes: 5 visual schemes consistent with your indicator suite:

Classic, Modern, Robust, Accented, Monochrome

📊 Signal Interpretation:

🟢 BULLISH: MFI > MA Filter (money flow above trend)

🔴 BEARISH: MFI < MA Filter (money flow below trend)

⚠️ OVERBOUGHT: MFI > 80 (potential reversal zone)

⚠️ OVERSOLD: MFI < 20 (potential reversal zone)

3. 🎨 Visual Elements
🚨 Gradient Zones:

Overbought zone : Red gradient intensifying toward 100

Oversold zone : Green gradient intensifying toward 0

📋 Dashboard Display: Top-right status indicator showing "⬆️ Bullish" or "⬇️ Bearish"

📊 Dynamic Coloring: MFI line changes color based on position relative to MA

⚡ Trading Applications
📈 Primary Uses:
🎯 Money Flow Direction:

MFI > MA = Bullish money flow regime

MFI < MA = Bearish money flow regime

💪 Trend Strength with Volume Confirmation:

MFI considers both price movement AND volume

Higher volume moves have more significance

Validates price trends with volume support

🚨 Extreme Zone Signals:

Overbought: MFI > 80 (potential sell opportunity)

Oversold: MFI < 20 (potential buy opportunity)

📊 Zone Analysis:
🔴 Overbought Zone :

Red gradient fills

Indicates excessive buying pressure

Watch for bearish reversals

🟢 Oversold Zone :

Green gradient fills

Indicates excessive selling pressure

Watch for bullish reversals

🟡 Equilibrium: Yellow MA line acts as volume-weighted trend filter

🎨 Customization Options
👁️ Display Features:
📊 Dual Components: Always shows both MFI line and MA filter
🎨 Gradient Visualization: Automatic fill for overbought/oversold conditions
📋 Status Dashboard: Clear bullish/bearish money flow indication
📈 Customizable MA: Choose from 6 different moving average types

🎨 Visual Themes: (Consistent suite)
🎨 Classic: Green/Red (traditional volume-weighted colors)

🚀 Modern: Cyan/Purple (contemporary)

💪 Robust: Amber/Deep Purple (high contrast)

🌈 Accented: Purple/Magenta (vibrant)

⚫⚪ Monochrome: Light Gray/Dark Gray (minimalist)

🔔 Alert System
🟢 LONG Alert: Triggers when MFI crosses above MA
🔴 SHORT Alert: Triggers when MFI crosses below MA
📧 Format: Includes ticker symbol for tracking

⚡ Key Advantages
✅ Strengths:
🎯 Volume-Weighted Accuracy: Combines price and volume for more reliable signals
💪 Overbought/Oversold Filter: Built-in 80/20 thresholds with gradient visualization
👁️ Clear Trend Identification: MA filter separates noise from meaningful money flow
🔄 Flexible Configuration: Multiple MA types for different trading styles
📊 Professional Dashboard: Immediate money flow status recognition

📊 Optimal Settings:
⚡ Short-term Trading: MFI Length 10-14, MA Length 20-50
📊 Medium-term Trading: MFI Length 14-20, MA Length 50-100
📈 Long-term Trading: MFI Length 20-30, MA Length 100-365

🏆 Unique Features:
🎯 Volume Integration: The only oscillator in your suite that includes volume data
📊 Gradient Thresholds: Visual intensity shows proximity to extremes
🎨 Consistent Design: Matches your indicator family aesthetics
📋 Money Flow Dashboard: Quick visual confirmation of volume trends
🔧 Dual Analysis: Combines oscillator with dynamic trend filter

🔄 Trading Strategies
1. Basic Money Flow Strategy:
Go LONG when MFI crosses above MA from oversold

Go SHORT when MFI crosses below MA from overbought

Exit when opposite extreme is reached

2. Divergence Detection:
Price makes higher high, MFI makes lower high → Bearish divergence (selling pressure weakening)

Price makes lower low, MFI makes higher low → Bullish divergence (buying pressure increasing)

3. Volume Confirmation:
Strong trend + rising MFI = High conviction move

Weak trend + declining MFI = Potential reversal

📈 Performance Tips
Volume Matters: MFI is most effective in markets with consistent volume

Extreme Zones: levels often act as support/resistance for the indicator

Divergence Signals: More reliable than simple overbought/oversold readings

Trend Alignment: MFI above MA in uptrend, below MA in downtrend

Confirmation: Combine with price action at key support/resistance levels

This enhanced MFI indicator provides professional-grade volume-weighted analysis with intuitive visualization, allowing traders to identify money flow trends, spot potential reversals at extremes, and filter signals through the customizable moving average for higher accuracy trading decisions! 📊💰