Trading is easy with MFI

MFI (Money Flow Index) actually is one of the indicators of the volume provided by MT4 to complement the trading tools in there. Although these indicators including indicators of volume but its use are more based on the workings of the oscillator lines indicator. This indicator includes two lines as the overbought level (level 80) and oversold level (level 20), but we can add one more level, i.e. the level 50 (middle line) as a reference to see the forwarding or reversal of the price. 

We can display this indicator MFI for tool detection direction of the trend, with the following steps:

1. Select the icon in the form of the green plus sign next to the top of MT4. Then choose "Volumes" then select the "Money Flow Index"

2. then select "levels" tab to add a level of the middle line. Press the button "Add" and then write the number 50 on the column level. Then click "Ok". 

3. Then level 50 as the middle line will be attached to the chart.

Things that should be noticed in using indicators MFI are:

• The level above the middle line (above level 50) is the bullish area
• A level in under middle line (below level 50) is the bearish area
• Although the level 80 upwards as the overbought area, but a reversal of the price does not have to be in the area.
• Although the level 20 down as oversold area, but a reversal of the price does not have to be in the area.
• Confirm YOUR BUY or SELL during the crossing of the line exceeds the level curves of the MFI.

How do I use the indicator MFI for determining the open BUY or SELL?

OPEN BUY

• If the price movement (curve) is in the area then crossed the line more oversold level 20, or line level 50 (middle line) from bottom to top.
• See the candle patterns are formed after the price of the pass level 20 or 50 heading upwards. If the candle is bullish candle formed then we are ready to open a BUY position.

OPEN SELL

• If the price movement (curve) is in overbought area then crossed more lines of level 20, or line level 50 (middle line) from top to bottom.
• See the candle patterns are formed after the price level in line 80 or 50 heading down. If the candle is bearish candle formed then we are ready to open a SELL position.

Note:

• In order for us not to be fooled by the price movement then note the price level when passing through the 20, 50 and 80. 
• After crossing the price to the level of the lines see the pattern of a candle that is formed as a confirmation.