Indicator · DP_MoneyFlow_Osc_v5

A touch is not a turn.

DP_MoneyFlow_Osc_v5 is a Money Flow Index oscillator that marks a reversal only once it confirms, not on every brush of the overbought or oversold line.

Not for sale documented here in full Finished scripts, published as reference

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Fig. 1 The same line does two different things at the oversold band: touches it and keeps falling (no signal), then later pushes into the overbought band and turns back the same bar (a confirmed sell). Drawn from generated data, not a capture.

01 Function

A cleaner money-flow read

DP_MoneyFlow_Osc_v5 is a Money Flow Index oscillator: a volume-weighted momentum line that runs in its own pane below price, reading whether money is flowing into or out of a symbol rather than just tracking price change on its own.

Most MFI implementations mark every crossing of the overbought or oversold line, which produces a signal even while the line is still moving deeper into the zone. This one waits for the line to actually turn. It also carries a colour gradient that shows how deep into either extreme price currently sits, so the read is visible before a signal ever fires.

It is a general-purpose oscillator, not tied to any particular market or session. It works on any symbol and timeframe that carries volume data.

02 Method

Signals need a confirmed peak

The oscillator splits hlc3 × volume into positive and negative flow over a 50-bar window, expresses the ratio as a 0 to 100 read, and smooths it twice, once at an 8-bar length and again at a 14-bar trend length. Overbought sits at 70 and oversold at 30.

A buy or sell label only prints on a confirmed peak: the line has to have closed at or beyond the extreme line on the previous bar, and be turning back this bar. A line that touches the extreme and keeps moving the same direction prints nothing, which is the exact case the figure above marks. An alternation option can also require signals to take turns, buy then sell then buy, so the same side cannot fire twice in a row. A reverse toggle inverts the whole oscillator's polarity for traders who read money flow the other way round.

03 Settings

What you tune

Length: 50
Overbought / Oversold: 70 / 30
Smoothing length: 8
Trend smoothing length: 14
Reverse money flow: Off
Alternate signal: On

04 Spec

Specification

Type: Indicator
Pine version: v6
Chart placement: Separate pane
Plots: Gradient-coloured MFI line, OB/OS band
Alert conditions: Buy Alert, Sell Alert
Intended market: Any symbol with volume data
Intended timeframe: Any

05 Reference

Published as reference

This script is finished and documented in full on this page. It is not for sale.

Questions about this script: deishmedia@gmail.com.