[blackcat] L1 OBV-MFI Combo

7 Jun 2022

Level 1

Background

As requested, this is a combo of OBV and MFI indicators

Function
On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. Joseph Granville first developed the OBV metric in the 1963 book Granville's New Key to Stock Market Profits.
The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100.
The combo of them is still an oscillator.

Remarks

Feedbacks are appreciated.

20 Apr

Nota Keluaran

OVERVIEW
The [blackcat] L1 OBV-MFI Combo indicator combines On-Balance Volume (OBV) and Money Flow Index (MFI) to provide a comprehensive view of market momentum and volume trends. This indicator calculates a unique OBV-MFI signal and plots it alongside a trigger signal, helping traders identify potential buy and sell opportunities. With customizable bands and visual labels, it offers a clear representation of market sentiment 📈💹.

FEATURES

Combines OBV and MFI to create a unique momentum indicator 📊
Plots OBV-MFI Signal and Trigger Signal lines for easy visualization:
OBV-MFI Signal: Yellow line representing combined OBV-MFI values.
Trigger Signal: Fuchsia line acting as a reference for crossover signals.
Includes customizable upper, middle, and lower bands for better context:
Upper Band: 80 level (blue).
Middle Band: 50 level (gray).
Lower Band: 20 level (blue).
Displays buy ('Buy') and sell ('Sell') labels on the chart for quick identification 🏷️
Generates alerts based on crossover events between the OBV-MFI Signal and Trigger Signal 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the Length parameter to suit your preferred sensitivity.
Monitor the chart for buy and sell labels indicating potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the bands as additional context for market sentiment analysis.
LIMITATIONS

The indicator may generate false signals in highly volatile or ranging markets 🌪️.
Users should combine this indicator with other forms of analysis for more reliable trading decisions.
The effectiveness of the indicator may vary depending on the asset and timeframe being analyzed.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance and parameters as needed to fit your trading strategy.