The Money Flow Index (MFI) indicator for Metatrader 5 assesses the strength and momentum of Forex pairs, offering precise signals for entering and exiting trades.
Basically, it’s used to identify oversold and overbought market conditions but it works very well for pinpointing trade entry levels.
The MFI shows up in a separate chart window as a blue colored line that oscillates above and below the neutral 50 level.
How to use the Money Flow Index to your advantage?
- The market is overbought when the MFI reading reaches 70. Look to sell in a downtrend.
- The market is oversold when the MFI reading reaches 30. Look to buy in an uptrend.
The indicator allows customizing the following settings and parameters: MFI period, tick volume, color, style.
Please note that the Money Flow Index should be used in conjunction with other trading indicators, such as moving averages.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period of time.
Its overall performance will vary depending on market conditions, remember to have realistic expectations.
Download Indicator 🆓
The following chart shows how the Money Flow Index (MFI) indicator looks like when applied to the MT5 chart.
How to Use the Money Flow Index (MFI) Indicator for Buying and Selling Currency Pairs?
Find a simple trading strategy below:
- The market should be in an uptrend.
- The MFI indicator crosses back above the 30 level from below.
- Open a buy trade and place a protective stop loss below support.
- Exit the buy trade for a predetermined profit target of your preference.
- Optional: close the trade when the MFI indicator reaches the 70 overbought level.
- The market should be in a downtrend.
- The MFI indicator crosses back below the 70 level from above.
- Open a sell trade and place a protective stop loss above resistance.
- Exit the sell trade for a predetermined profit target of your preference.
- Optional: close the trade when the MFI indicator reaches the 30 oversold level.
Download Now 🆓
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the MFI_price.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration