This study was inspired by two famous Trading View contributors. Shout out to Lazy Bear and Crypto Face!
In this study you have a live view of the strength of direction the market is heading. The indicator that looks like a black wave is showing us the momentum of price action. When a green dot appears under the lower level it is a indication that we should consider buying, and if the red dot appears over the upper level we should sell. The custom MFI indicator determines how much money is flowing into the market. If it is green that means money is flowing into the market and if it shows red it means that money is flowing out of the market.
Q1. Here you mention " When a green dot appears under the lower level it is a indication that we should consider buying, and if the red dot appears over the upper level we should sell."
By Lower level, you mean the over sold level right? So if a green dot appears below the oversold level (-58), then consider buying? Is my understanding correct?
Q2. What does the blue wave over the black wave represent?
Bunghole
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@suprotrader, yes, when the green dot is under -53 it is considered a buy signal. The waves represent the strength of volume either upward or downward. upward is above zero line, and downward is below zero line
I have tried it on multiple timeframes. It's a beauty so far if I look at Backtest history. Although in realtime, I am unable to figure out an indicator that could strengthen/compliment this call.
Could you please tell me an indicator that will complement this signal (Green dot under -53). I tried a simple indicator on a 1D view to test if it works well when the volume of current day is greater than the volume on the alert day and so on. I have tried a few similar indicators but I feel I am missing something obvious.
Can you please provide some guidance on how to strengthen this call or something that you tried in the past and has worked well for you. Thanks in advance.
Bunghole
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@suprotrader, yes, i believe if you pair this with MACD indicator it works great. So pretty much when the green dot has appeared under -53 you can wait for the macd to cross over the signal line for confirmation of a buy entry. This will show you that the downtrend is now over and buyers are entering the market again.
Another way to use this indicator is when the dark wave is over the zero line you enter and stay in the long trade, and when the dark wave is under zero line you can enter and stay in a short.
suprotrader
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@Bunghole, Thanks so much for the suggestions! I am going to try it out.
Gabe_itch69
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@suprotrader, love this, could somebody give me a tutorial on how to receive an alert when there's a green dot that appear below -58? a little new to the alert features on trading view. thanks :)
cryptopreet
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awesome combining of two scripts.... would be more helpful if u add divergence in it(based on green and red circles)
Bunghole
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@cryptopreet, This is a great way to tell the strength of the market. I'll consider adding divergence in the near future
crypto_preet
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@Bunghole, can't wait to test its efficiency with divergence added... hope u will code it early
Q1. Here you mention " When a green dot appears under the lower level it is a indication that we should consider buying, and if the red dot appears over the upper level we should sell."
By Lower level, you mean the over sold level right? So if a green dot appears below the oversold level (-58), then consider buying? Is my understanding correct?
Q2. What does the blue wave over the black wave represent?