Green MFI bars – Green bars indicate that the market is already forming a momentum trend. Thus, if one were to enter a new position, it should be in the same direct of recent price movements. Those fighting the current trend should close positions. Furthermore, we can conclude from rising MFI and volume that:
Brown MFI bars – The MFI turns brown as the MFI drops but volume rises. Known as the “fade,” interest in the current direction may be waning. However, as Williams noted, the “fade,” or brown color, often occurs ahead of serious momentum shifts or surges. Several brown MFI bars in a row may indicate to traders that the next wave of momentum buying or selling is soon to start.
- More traders are entering the market.
- New transactional activity favors the most recent bullish or bearish trend.
- Market volatility is rising, since the MFI reading is rising all the while volume is rising.
Blue MFI Bars – The blue MFI bars are referred to as the “fake” because any movement that happens during a blue MFI bar period is fake. Movements that happen when the MFI reads blue are more likely to be the result of a small group of large traders, who are placing their own forex conversions for their business, not for speculative purposes. Additionally, blue bars may be market makers or forex dealers who are making market values to flush out short-term speculators. Volume is declining, but volatility is increasing. Those who are buying and selling here aren’t very committed to their trades.
Pink MFI bars – This, according to Williams, is the money maker for traders. Pink MFI bars occur when volume builds without momentum, meaning that more market participants are placing more trades, but the market has yet to pick a movement, up or down. When sellers and buyers clash, the result is a series of flat trading periods until bulls overpower bears, or vice versa. Prepare for a quick, sudden, and profitable momentum-fueled trading event. Williams referred to the Pink MFI bars as being the “squat” because it is the time at which the market price is at rest before a big momentum rally in either direction.
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الموضوع | كاتب الموضوع | المنتدى | مشاركات | آخر مشاركة |
توصيات الأخوان المتحدون امجدونا1 وابو هادي المضمونة بأمر الله | amjadona1 | قسم التوصيات - توصيات العملات | 4638 | 09 - 06 - 2011 05:02 AM |
الفرص القوية | An3am | قسم التوصيات - توصيات العملات | 20 | 24 - 12 - 2009 06:07 AM |