RSI or relative strength index is an indicator that determines the strength of a trend and the possibility of its change. It shows who dominates the market: buyers or sellers and whether their mood is bullish or bearish. The indicator is very popular among traders and analysts largely because of the ease of interpreting its signals.
With the help of the RSI, you can see the overbought and oversold market, as well as divergence and convergence, indicating a trend reversal.
MFI or Money Flow Index. It shows the intensity with which funds are invested into the asset and withdrawn from it; in fact, it shows the speed of price movement. In its nature, it is similar to the RSI, but differs in the fact that its calculations also consider the volume of trades.
MFI divides financial flows into positive and negative ones. Positive flows cause the price of a financial instrument to rise, respectively, negative flows cause it to fall.
In The Waved Indicator, we use an advanced system for analyzing these indicators in combination with other trigger points. This determines the positions the other players open. And the signal is given when a major player already knocks out all the small players from the market. This is a very important difference: we do not just trade based on indicators, but use them to understand who and where was “robbed” in the market. And when there are signs of a reversal and everything is favorable for us, we take a position.
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