Detail discussion on Trading with Money Flow Index Indicator

Assalamu Alaikum! Dear seniers and juniers, umeed ha k ap sab kheriat sa hon ga aur forex market man trading ko enjoy ker raha hon ga.

Importance of ""Technical Indicators"" in forex trading:
Forex trading man trader currency pairs aur commodities ki price movements ko smajhna k liye price chart ko read kerta ha, q k price chart patterns man changes, momentum
aur price k trend man change ko accuracy k sath identify kerta ha. Technical Indicators currency pairs aur commodities k price chart man price ki movement ko track kerna k liye
use hona wala most important technical tool ha. Forex trading man trader kisi b currency pair ya commodity ko buy/sell kerna k liye ""technical indicators"" per depend kerta ha.
Aj man apka sath ""Money Flow Index Indicator"" per trading k related apna knowledge share kerta hun.

Money Flow Index Indicator: (MFI)
Money Flow Index Indicator ak ""momentum indicator"" ha jo currency pairs aur commodities ki Money flow k in aur out ko specific timeperiod k liye measure kerta ha.
Money Flow Index Indicator aur Relative Strength Index Indicator man main difference ye ha k RSI Indicator sirf price per work kerta ha jab k MFI indicator volume aur price dono per work kerta ha.
Is liye MFI indicator ko ""Volume Weighted RSI"" b kehta han. MFI indicator ""Money Ratio"" calculation k liye currency pairs aur commodities per money positive and negative flow
ko accumulation sa find kia jata ha aur Money Ratio ko ""Oscillator"" per display kia jata ha. RSI Indicator ki terha is man b 0 to 100 levels hota han, jin k dermiyan MFI indicator apna results display kerta ha

Re: Detail discussion on Trading with Money Flow Index Indicator

Assalamu Alaikum Dosto!

Money Flow Index

Money Flow Index (MFI) aik momentum oscillator ya indicator hai, jo trading dabao, khareed o farokht ki pemayesh karne ke liye time aur price dono ka analysis karta hai. MFI indicator ko Volume Weighted Relative Strength Index (RSI) bhi kaha jata hai, q k iss mein valum shaamil hota hai, lekin RSI ke bar-aks, jis mein sirf price ki analysis ki jati hai.
Positive money flow ka bahao aam price mein izafay se zahir hota hai, jo buying pressure ka signal deta hai, jab ke aam price mein kami MFI negative pressure ki nishan-dahi karti hai, iss terhan selling pressure ka signal deti hai. Yeh positive aur negative flow ko money flow ratio ya money ratio k liye jama kya jata hai.
Money ration ko MFI maloom karne ke liye istemaal kya jata hai, jo 0 aur 100 ke darmiyan ghoomta hai. Jaisa k MFI valum ko shaamil karta hai, is ka istemaal prices ki extreme aur mukhtalif signals k sath reversal jane ki shanakht k liye kya ja sakta hai.

Formula for the Money Flow Index (MFI)

Money Flow Index (MFI) ki calculation ko darjazel fomulas ki madad se calculate kia ja sakta hai;

1. Compute the typical price for a period.
   
   
   
   Typical Price = (Low + High + Close) / 3
   
   
   • Agar aaj ki typical price kal se ziyada hai, to is ka matlab hai, k MFI positive hai. Lekin agar typical price kam hai, to iss ka matlab hai, k MFI negative hai. Makhsos time period ke dowran positive money positive money flow deti hai, aur makhsoos time period mein negative money negative money flow deti hai.
   
   
   
2. Compute the raw money flow.
   
   
   
   Raw Money Flow = Volume x Typical Price
   
   
3. Compute the money ratio.
   
   
   Money Ratio = 14-period Positive Money Flow / 14-period Negative Money Flow
   
   
4. Compute the Money Flow Index (MFI).
   

Money Flow Index (MFI) = 100 – [100 / (1 + Money Ratio)]

Money Flow Index (MFI) Signals

MFI indicator teen tarah k signals genrate karta hai, overbought/oversold conditions, failure swings, and divergences. In ki mazeed information darjazel hai;

1. Overbought/Oversold Condition
   
   
   Agar MFI prices mein taizi se izafay ko high level par zahir karta hai, to security ko overbought move karna samjha jayega. Issi terhan, agar MFI price mein kaafi low level par taizi se kami ki nishandahi karta hai, to security ko oversold samjha jata hai. Overbought shuda aur oversold hui levels price ki extreme positions ko pehchanney mein helpful hote hen.
   Aam tor par, overbought condition uss waqat hoti hai, jab bhi MFI 80 se oopar ho, aur MFI 20 se kam ho to oversold position ki nishan-dahi karta hai. Prices mazeed upward rise kar sakta hai, jab bhi bullish trend mazboot ho, aur MFI 80 se ziyada increase sakta hai.
   Dosri taraf, MFI 20 se neechay ger sakta hai jab prices neechay ki taraf mazboot trend ki mojoodgi mein girty hen. Agar MFI 90 se oopar rise hota hai, to usay waqai overbought condition samjha jata hai, aur 10 se kam MFI ko waqai oversold honay wali condition samjha jata hai.
   Taham, MFI 90 se ziyada aur 10 se kam kabhi kabhaar hota hai aur yeh tajweez karta hai ke qeemat ki movement paidaar nahi hai. bohat si securities exchange market mein 90 / 10 k levels ki price ki extreme ko puhanche baghair trading karti hen.
   
   
   
2. Divergence
   
   Divergence uss waqat hota hai jab price action ki movement aur MFI ki movement aik dosre k opposite direction main hon. Dono k darmeyan faraq ko new ane wale signal k tawar par dekha jata hai. Divergence ki do aqsaam hen;
   
   
   Bullish Money Flow Index (MFI) divergence
   
   
   Bullish MFI divergence uss waqat hota hai, jab price aik new low level par change ho jati hai, jabkay, MFI high low honay ki nishan-dahi karta hai, jo money k flow mein izafay ko zahir karta hai. Iss ka matlab hai, ke selling pressure kam ho raha hai, aur buyers market par qabza kar rahay hon ge. Yeh prices par securities buy karne ka aik achah mauqa faraham karta hai.
   
   
   Bearish Money Flow Index (MFI) divergence
   
   
   MFI bearish divergence uss waqat hota hai, jab price aik nainew high par change hoti hai, jabkay MFI lower high ki nishan-dahi karta hai. Yeh buying pressure mein kami aur sellers k liye market par qabza karne ke waqat ki nishan-dahi karta hai. Yeh sellers k liye munafe kamanay ka aik achah mauqa hota hai.
   
   
3. Failure Swing

Divergence ki terhan, failure swings ke nateejay mein price mein bhi tabdeeli ho sakti hai. Taham, failure swings ka inhisaar price par nahi hai aur mukammal tor par MFI par inhisaar karte hain. Failure swings ki do aqsaam hen, bullish aur bearish, jab k in dono aqsaam ko mazeed chaar marahil main taqseem kia jata hai;

Bullish Money Flow Index (MFI) failure swing

• Step 1: MFI decreases below 20 (oversold)
• Step 2: MFI recovers and rises above 20
• Step 3: MFI decreases but stays above 20
• Step 4: MFI shoots above the previous high

Bearish Money Flow Index (MFI) failure swing

• Step 1: MFI increases above 80 (overbought)
• Step 2: MFI drops below 80
• Step 3: MFI slightly increases but stays below 80
• Step 4: MFI drops below the previous low