The Fractal Money Flow Index indicator for Metatrader 5 identifies oversold and overbought market levels, making it a valuable tool for generating trade entry signals.
Money Flow Index is often abbreviated as MFI.
How does it identify overbought and oversold market levels?
- When the Fractal MFI indicator reaches the 30 level, the market is in an oversold state.
- When the Fractal MFI indicator reaches the 70 level, the market is in an overbought state.
In addition to identifying overbought and oversold market conditions, the Fractal MFI indicator can effectively serve as a trade entry signal indicator.
The following indicator inputs and parameters can be modified according to your preferences: period, MFI, line style, and colors.
It is highly recommended to familiarize yourself with this indicator and thoroughly test it on a demo account before implementing it in live trading.
It supports all time frames and Forex pairs.
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Fractal_MFI.mq5 Indicator (MT5)
Chart Example
The following chart shows what the Fractal Money Flow Index indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Fractal Money Flow Index Indicator?
Find a simple trading strategy below:
Buy Signal
- A buy signal is triggered as soon as the Fractal MFI indicator crosses the 30 level bottom up.
- It is important to verify that the overall market trend is upward.
- Initiate a buy market order and place a stop loss below short-term support.
- Close the buy position either when the risk to reward ratio reaches a minimum of 1.0 or when a sell signal is received.
Sell Signal
- A sell signal is triggered as soon as the Fractal MFI indicator crosses the 70 level top down.
- It is important to verify that the overall market trend is downward.
- Initiate a sell market order and place a stop loss above short-term resistance.
- Close the sell position either when the risk to reward ratio reaches a minimum of 1.0 or when a buy signal is received.
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Fractal_MFI.mq5 Indicator (MT5)
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 Fractal_MFI.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