Discussion of article "Learn how to design a trading system by BW MFI"

MetaQuotes 2023.03.03 11:31

New article Learn how to design a trading system by BW MFI has been published:

This is a new article in the series in which we learn how to design a trading system based on popular technical indicators. This time we will cover Bill Williams' Market Facilitation Index (BW MFI).

Strategy one: BW MFI - Movement Status

According to this strategy, we need to create a trading system that can be used to get a signal of the movement of the BW MFI indicator based on the color of the indicator's bar which will be determined as per the nature of the indicator by comparing four values every tick to determine the position of every one of them. These four values are the current BW MFI, the previous BW MFI, the current volumes, and the previous volumes. We need the program to check them and determine the position of each value. When the current value of BW MFI is greater than the previous one and at the same time the current volume is greater than the previous one, we need the trading system to return a comment on the chart with "Green State - Green Bar" and this is the first case. The second one is when the current BW MFI is less than the previous one and at the same time the value of the current volume is lower than the previous one when the trading system to return a comment on the chart with "Fade Statue - Brown Bar". The third case is when the current BW MFI value is greater than the previous one and at the same time the value of the current volume is lower than the previous one, when need the system to return a comment on the chart with "Fake State - Blue Bar". The fourth and last case is when the current BW MFI value is lower than the previous one and at the same time the value of the current volume is greater than the previous one, we need to get a comment on the chart with "Squat State - Pink Bar".

The following graph is for the movement status strategy blueprint:

Movement Status blueprint