iMACD and Money Flow Index Indicator

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In this video tutorial, we will combine the iMACD and Money Flow Index Indicator. In the last few videos, we have been consistently using the iMACD as one indicator but we kept changing the 2nd indicator. The reason we do this is to demonstrate that anyone can combine their favorite indicator to form a nice trading strategy. In this video tutorial we will use the Money Flow Index Indicator as the 2nd indicator.

A quick recap on the Money Flow Index...

• The 45 level is the sell line and the 55 level is the buy line.
• The MFI indicator provides a buy signal when it penetrates the 55 level.
• And the MFI indicator provide a sell signal when it penetrates the 45 level.

When we see a buy or sell signal from the MFI, we want to also see a confirmation from the iMACD indicator. To get the confirmation, the iMACD line (blue and red) have to crossover. Blue crossing over the red for a buy signal and a red crossing over the blue for a sell signal.

Basically, we want to see both the indicator generating the same buy or sell signal at about the same time. That is of course the ideal case but often times it might not happen. But like mentioned many times in past tutorials, you can be a little lenient by providing up to 3 trading sessions. The most important in trading is discipline and patience.

Of course, sticking to the same strategy is just as important. There is no strategy that can be 100% accurate all the time. So with that in mind, there is no reason to take bigger risk than you can afford even though all indicator have aligned.

You are in this for the long term. One trade cannot allow you to retire. Likewise, one trade cannot break the bank. If one trade can determine your future, then you probably need to re-look into your sizing management strategy.

Enjoy this video and we see you in the next.

Stay safe out there.