John Bollinger MFI Money Flow Index), normalized.
Bollinger Bands are used for calculating overbought/oversold zones.
There are four input parameters:
- MFI period - MFI calculation period
- MFI applied volume - volume used for MFI calculation
- BB period - Bollinger Bands calculation period
- BB deviation - Bollinger Bands deviation
Calculation:
NormMFI = (MFI-BL) / (TL-BL)
where:
TL = BBands(MFI, BB period, BB deviation, UPPER_BAND)
BL = BBands(MFI, BB period, BB deviation, LOWER_BAND)
MFI - Money Flow Index(MFI period, MFI applied volume)
BBands - UPPER_BAND and LOWER_BAND of Bollinger Bands
Fig.1. MFI normalized
Fig.2. MFI normalized + MFI