This video discusses the phenomenon of the Money Flow Index peaking in the middle of a strongly trending move, then the Money Flow Index diverging from price. Note that you don't always find this divergence in every strong move. Further, even when you do, the Money Flow Index peak does not always split the move exactly in half. But it happens often enough that I pay attention to it.
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Thanks for posting this. I found it very interesting, and hopefully, useful in the future.
ReplyDeleteThanks for the post. Something new to learn today. And yes it is interesting.
ReplyDeleteGlad you liked the video. We had saw some selling pressure into the close as the S&P peaked at 1184.38 then gave back 6 points in the last two hours before the bell. We'll see if that marks a top.
ReplyDeleteThe Money Flow T certainly produced a turn, with the S&P dropping from 1184 to 1166 from yesterday afternoon to this afternoon, before rallying 7 points into the close over the last hour of trading today.
ReplyDeleteSo, we got “A” turn yesterday. But was it “THE” turn? We should know in a couple of trading days.
Parker
ReplyDelete2 questions...
where is the video on the MFI tops,, you have referred to it several times, but I can't find it on the blog.
Bill
I noticed on one of the Stockcharts that you posted that you extended the chart into the future..where is the command in the stockchart control panel that allows that? I have been looking all day, trying to duplicate your chart
whooops..... the MFI chart is at the top of this thread...
ReplyDeletesorry
BillH
ReplyDeleteIn the Chart Attributes section, using Range as "Fill the Chart" or "Predefined" (e.g. "6 months"), there's a space for "Extra Bars". If you want 15 extra days on a daily chart, put 15 in the "Extra Bars" section. 10 extra weeks on a weekly chart? Put 10 in the "Extra Bars" section.
Note - this option is not available when you manually select a "start" and "end" date to your chart, or when you choose "year to date."
thanks
ReplyDeleteI emailed stock charts and they gave me the answer.... I have used the service for over 2 years and never used that function.. I never even got curious about "bars"
Bill
Parker
ReplyDeleteI am not sure you are monitoring this older thread.. but I was very interested in your work with the MFI It is one of my favorites and one of the 2 oscillators I use. Using the T theory.. and the MFI peak on Sept 21, and a price low on 8/25, I get a top expected on 10/25. Is that also what you were expecting using this indicator?
BillH
ReplyDeleteIn the video, I used August 27 as the start of the move (i.e. start of the T), with September 21 as a center post, which gave me October 13 as the end.
If you'll note, we topped at 1184.4 on October 13, and have really traded sideways since.
So this Money Flow T didn't nail a trend change, but it did nail the day the trend hit a wall of resistance, which is good to know if you are long and want to plan a profit-taking exit.
Yet to be determined if we materially break through that wall.
Ok thanks.. I am getting careless.. I meant to say that I got a top date of 10/15, not 10/25. so I think I understand your application.
ReplyDeletegood stuff.. I like what you are doing. and the divergence strategy is very sharp!
I got a sell signal on Tuesday near the close using my indicators. Yesterday was a complete surprise. I got stopped out of the positions. Today confirms my sell signal of Tuesday, so I guess I will just have to wait to see what tomorrow. This market has become completely incomprehensible....
My experience keeps telling me to trust my strategy, but sometimes I lose faith, even after a series of 6 very profitable trades.
Bill
Parker---Alert----Alert
ReplyDeleteNot sure you are still monitoring this thread... but I have been playing around with the cycle tool in stock charts, and trying to find time symmetry using the MFI peak. I could not find anything that would work, until I went to the weekly SPY.
Using the weekly SPY (and probably on the daily S&P).. and using a MFI peak in mid January, starting the cycle at the March lows, the cycle projects a top in 2nd week of November. Just in time for your T 13 termination.
Man, I love it when a plan comes together!
any thoughts?
Bill
Bill
ReplyDeleteI'm not sure I follow, but I like your conclusion!
Here's an example of a recent Money Flow T in Silver. It's a little bit different in that the divergence did not happen until after a lengthy topping pattern on the MFI. Note you start the T when the up move starts, and you split the topping pattern for the center post.
http://schrts.com/9SFjxH