Binance OI Stochastic MFI

https://ibb.co/ZR96ZncDBinance Open Interest Stochastic Money Flow Index (OI Stochastic MFI)
Inspiration:
This indicator is an innovative tool combining the traditional Money Flow Index (MFI) and Stochastic Oscillator concepts, enhanced by directly incorporating Open Interest data from Binance Futures BTCUSDT perpetual contracts.

What is it and what does it measure?
The traditional Money Flow Index (MFI) measures the flow of money considering both price and volume.

Open Interest represents the total number of outstanding futures contracts at any given moment, offering deeper insight into speculative involvement and investors' positioning.

This indicator replaces the traditional volume input with Open Interest, providing a more accurate perspective of speculative inflows and outflows in Bitcoin's perpetual futures market.

Advantages and Applications:
Higher accuracy for futures markets, particularly cryptocurrencies, due to direct usage of Binance Futures data reflecting real and speculative activities.

Clear identification of extreme overbought and oversold levels.

Provides objective visual signals for buying (green upward arrows) and selling (red downward arrows).

How to interpret:
The indicator oscillates between values of 0 and 100.

Values above the configured overbought level (e.g., 80) indicate potential downward reversals.

Values below the configured oversold level (e.g., 20) indicate potential upward reversals.

Crossovers of the K-line (blue) with the D-line (orange) generate immediate buy or sell signals.

Practical use:
Long (buy): Look for a green upward arrow after the indicator exits an oversold region.

Short (sell): Look for a red downward arrow after the indicator exits an overbought region.

This indicator is especially useful for traders operating perpetual futures contracts, providing increased precision and clarity for decision-making based on speculative money flows.