MFI + Realtime Divergences

The MFI + Realtime Divergences indicator is a comprehensive technical tool that enhances the standard Money Flow Index (MFI) with automated divergence detection and multi-timeframe analysis. It helps traders identify potential trend reversals and continuations by combining price and volume data with real-time visual alerts.

Usage

The script is used to identify overbought/oversold conditions and trend exhaustion through divergences. Traders can use the real-time divergence lines to spot discrepancies between price action and the oscillator.

Main features include:

• Real-time Divergences: Automatically draws regular (reversal) and hidden (continuation) divergence lines on the oscillator.
• Multi-Timeframe Analysis: Allows users to view MFI data from a different timeframe than the current chart.
• Visual Signals: Background coloring options highlight centerline crosses or overbought/oversold states.
• Stochastic RSI Ribbon: Includes an optional ribbon based on multi-timeframe Stochastic RSI confluences for additional trend confirmation.

Details

The indicator calculates the standard Money Flow Index (MFI) and applies a pivot-based scanning algorithm to detect divergences. Unlike price-only oscillators like the RSI, the MFI incorporates volume, providing a more holistic view of market momentum. The script also includes a refactored version of popular divergence logic to ensure lines are updated as soon as a pivot point is confirmed.

Settings

MFI Settings

• MFI Length: Sets the lookback period for the MFI calculation (Default: 14).
• MFI Source: Determines the price source (e.g., hlc3).

Divergence Settings

• Show Divergence Lines: Toggles the visibility of detected divergence lines.
• Divergence Type: Choose between Regular, Hidden, or both.
• Don't Wait for Confirmation: If enabled, signals appear earlier but may be less reliable.

Pivot Point Settings

• Pivot Period: The number of bars used to identify local highs and lows for divergence detection.
• Auto Adjust Pivot: Automatically scales the pivot period based on the chart timeframe for optimal sensitivity.

Multi-Timeframe (MTF) Settings

• Select alternate timeframe: Fetches MFI data from a specified timeframe (e.g., 60m, 240m).
• Stoch RSI Confluences: Configurable timeframes and thresholds for the MTF ribbon logic.

FAQ

How do I use regular vs. hidden divergences?

Regular divergences typically suggest a potential trend reversal, while hidden divergences often suggest a trend continuation.

Can I set alerts for these signals?

Yes, the script is alert-optimized, allowing you to set notifications for any detected regular or hidden divergence.

How can I access MFI + Realtime Divergences?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.