Script question

Optuma Scripting
1

If I code MFI(BARS=2) IsUp, which RSI will it use: a 2 period RSI or just the last two candles of RSI?

2

or MFI as written here

3

Hi Stephen,

It will just use MFI() but you can nest RSI within MFI. For a 2 bar MFI of a 2 bar RSI use this:

MFI(RSI(BARS=2), BARS=2)

However, as the MFI() uses volume in its calculation I’m not sure if it can be used on an RSI.

4

Thank you but how would you just read this: MFI(BARS=2)? is it just saying the last two price candles showed MFI increasing on both candles? Which RSI setting is it using? RSI 2 not RSI 14?

5

Hi Stephen,

MFI(Bars=2) will just give the value based on the price chart. MFI(Bars=2) IsUp will give a true condition if the value is higher than the previous bar.

As per the KnowledgeBase article this is how the MFI is calculated, so RSI values aren’t used:

  1. For each bar, average the High, Low, and Close.

  2. The MF value is equal to the Average x Volume.

  3. If the value in step 1 is higher than the previous, it is considered to be a positive money value, otherwise negative. The positive money flow is then the sum of all the positive money values over the number of bars.

  4. The money ratio is then + MF divided by -MF.

  5. The Index is then 100 - (100 / (1 + Money Ratio)).