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A trading view indicator strategy is shared in this video for CHF/JPY pair in a 15-minute timeframe using MFI indicator with specific settings. Buy/sell signals are confirmed, and trade is placed with a stop loss and a profit target of 1:1, resulting in winning trades. If interested, viewers are encouraged to like, share, and subscribe to the channel for future strategies.
Powerful Trading View Indicator trading strategy
Trading in the financial markets is a complex and challenging endeavor. It requires specialized skills, knowledge, and experience to consistently generate profits. One of the critical factors that contribute to successful trading is the use of technical indicators. Technical indicators offer traders a way to analyze the market’s behavior, identify trends, and generate trading signals. In this article, we will discuss one such indicator, the MFI, and how to use it in a powerful trading strategy.
Introduction to the MFI Indicator
The Money Flow Index (MFI) is a popular technical indicator that helps traders gauge the trend’s strength and the market’s momentum. It is similar to the Relative Strength Index (RSI), but instead of only measuring price changes, it also takes into account the volume of trades. The MFI measures the money flow by multiplying the typical price by the volume and then adds or subtracts the resulting value based on whether the current price is higher or lower than the previous price. The resulting value is then smoothed to create a range between 0 and 100.
Setting Up the MFI Indicator
To use the MFI indicator in this trading strategy, we need to change some of its default settings. We will be using it on the CHFJPY pair, in a 15-minute timeframe. The default setting for the MFI is a 14-period calculation. However, we will use a 10-period calculation. This will help us identify shorter-term trading opportunities. To set up the MFI on Trading View, click on the “Indicators” button, search for “Money Flow Index,” and select it. Then, adjust the settings to a 10-period calculation.
Trading Strategy Using the MFI Indicator
Now that we have set up the MFI indicator, we can start using it to generate trading signals. The strategy we will use is a simple yet powerful one. It involves waiting for the MFI indicator to break above or below the 70 or 30 levels, respectively. The 70 level indicates that the market is overbought, meaning that the buyers have pushed the price too high, and a reversal may be imminent. The 30 level indicates oversold conditions, where the sellers have pushed the prices too low, and a reversal may be imminent.
Buy Signal Confirmation
When the MFI indicator breaks above the 70 level, we take a buy trade. We place our stop-loss order at the previous low point. We set our profit target at a 1:1 ratio, meaning that our take-profit order is equal to our stop-loss order. This way, even if the trade does not work out, we will only lose the same amount that we would gain if the trade is successful.
Example: As shown in the chart below, we can see a buy signal confirmation when the MFI indicator breaks above the 70 level. We enter a buy trade at this point and set our stop-loss order at the previous low point. We then set our profit target at a 1:1 ratio. As we can see, the trade was successful, and we made a profit.
Sell Signal Confirmation
When the MFI indicator breaks below the 30 level, we take a sell trade. We place our stop-loss order at the previous high point. We set our profit target at a 1:1 ratio, meaning that our take-profit order is equal to our stop-loss order. This way, even if the trade does not work out, we will only lose the same amount that we would gain if the trade is successful.
Example: As shown in the chart below, we can see a sell signal confirmation when the MFI indicator breaks below the 30 level. We enter a sell trade at this point and set our stop-loss order at the previous high point. We then set our profit target at a 1:1 ratio. As we can see, the trade was successful, and we made a profit.
Repeat the Process
After completing a trade, we wait for another signal from the MFI indicator to generate our next trading opportunity. By using this strategy, we can take advantage of the market’s short-term momentum and generate profits consistently.
Conclusion
The Money Flow Index (MFI) is a powerful technical indicator that can help traders identify trading opportunities in the financial market. By using the MFI indicator with our powerful trading strategy, we can generate profitable trades consistently. We need to remember that no trading strategy is foolproof, and there will be losses along the way. However, by using sound risk management practices, we can minimize our losses and maximize our profits.
We hope that this article has been helpful in showing you how to use the MFI indicator in a powerful trading strategy. Remember to practice on a demo account before trading with real money and always use proper risk management techniques. If you like this strategy, please like, share, and subscribe to our channel for more trading strategies and tips.
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