Bi signal indicator
by Joseph Barics
To minimize false signals associated with moving average crossings, I began searching for an indicator
that would "suggest first" and "confirm or reject later." During this search I found interesting concepts in
three articles published by Stocks & Commodities —"Volume-weighted RSI: Money flow," (March
1989), "Money flow analysis," (February 1988) and "Speeding up the oscillator" (June 1989)—which I
used with modifications to make up this indicator.
The heart of this indicator is the Money Flow Index (MFI):
Over any time period a trader selects, the positive money flow is the sum of hourly positive money flow;
negative money flow is the sum of hourly negative money flow.