New Indicator idea "MRA Index"

Dato896 · Nov 22, 2023

The core of the "MRA Index" is a hybrid line, calculated using Money Flow Index (MFI), Relative Strength Index (RSI), and Average True Range (ATR), offering a nuanced view that considers both market momentum and volatility. The indicator is enhanced with a Standard Deviation (STD) channel and offers clear buy/sell arrows under specific conditions, adding to its precision.

What sets the "MRA Index" apart is its adaptability; it allows you to include or exclude ATR from the calculation, depending on your sensitivity preference to market volatility. It also includes the innovative FTR filter, coloring the area below the hybrid line to reflect market conditions, and the option to utilize Bollinger Bands as a filter for drawing arrows, providing additional layers of analysis for confident decision-making.

Formula (MFI+RSI) /2 * atr

check screens and lets discuss what to add there or remove from formula. here are some screens

Dato896 · Nov 22, 2023

The buy arrow is generated when the hybrid line crosses the lower line of the STD channel from below to above. This signal suggests a potential upward trend reversal or entry point for a buy position. Conversely, the sell arrow is triggered when the hybrid line crosses the upper line of the STD channel from above to below. This signal indicates a possible downward trend reversal or a suitable moment to enter a sell position.
Furthermore, the "MRA Index" indicator provides the choice to activate or deactivate the Bollinger Bands (BB) as a filtering mechanism for drawing buy and sell arrows. When the BB filter is enabled, the indicator only draws a buy arrow if the closing price of a candle is above the lower band of the BB, and it draws a sell arrow if the closing price is below the upper band of the BB. This additional filtering helps traders to identify potential trend reversals with increased confidence.