Money Flow Oscillator

The Money Flow Oscillator is the core component of Technimentals Oscillator. It features 8 primary signals of various money flow sources which are then processed through a user defined series of iterative modules to output both long and short term trading signals.

The initial signals are typical of money flow analysis; it’s the post-signal processing which really gives this oscillator it’s incredible edge with longer term accumulation and distribution signals. It does this by comparing price and volume over a period of time and measuring the strength of the signal to the strength of the price and volume. It’s comparison works over a user defined period and will naturally form wave patterns. Changes in tone often precede changes in trend. It is the divergences over these periods which can expose longer term changes in tone long before it occurs on the chart through price.

Like any oscillator, there are two primary signal types generated from the Money Flow Oscillator; confirmation (the indicator is moving in the same direction as price) and divergence (the indicator is in a different trend to the price). Ultimately, how you use the indicator is up to you, but Technimentals recommends the Money Flow Oscillator primarily as a contrarian indicator.