OPEN-SOURCE SCRIPT
Updated TFO + ADX with Histogram & Signal
Trend Flow Oscillator (TFO + ADX) – Histogram + Signal
This version of the original TFO+ADX introduces a MACD-style histogram and signal line overlay for clearer momentum and trend visualization.
The Trend Flow Oscillator (TFO+ADX) blends two powerful volume-based tools — the Money Flow Index (MFI) and Chaikin Money Flow (CMF) — along with a normalized Average Directional Index (ADX). The result is a comprehensive momentum and trend strength tool that offers a more precise read on when markets are gaining or losing conviction.
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How It Works
1.Money Flow Index (MFI)
• Measures volume-weighted buying/selling pressure using price and volume.
• Scaled between –1 and +1 for visual clarity.
2.Chaikin Money Flow (CMF)
• Evaluates volume distribution over time — institutional buying (accumulation) or selling (distribution).
• Also scaled between –1 and +1.
3.TFO Composite Line
• Combines MFI and CMF into a single flow reading.
• A signal line (EMA) tracks the trend of this flow.
• A histogram plots the difference between the TFO and its signal, giving clear signals on shifts in momentum.
4.Normalized ADX Overlay
• Shows trend strength on the same scale (–1 to +1).
• ADX > 0 indicates strong trending conditions.
• ADX < 0 signals weak or consolidating conditions.
⸻
Visual Interpretation
1. Histogram Bars
• Green: TFO is above the signal line → bullish momentum accelerating
• Red: TFO is below the signal line → bearish momentum building
• Bar height represents the strength of the momentum shift
2. Signal Line
• Tracks the smoothed trend of the TFO composite
• Histogram crossing above or below zero reflects momentum crossover and can act as entry or exit signals
3. TFO Raw Line (Optional)
• Still available for reference alongside the histogram
• Shows the unsmoothed blended money flow direction (MFI + CMF)
4. Extreme Zones
• Background shading appears when TFO exceeds ±1.0
• Helps highlight areas of stretched or unsustainable momentum, useful for spotting potential reversals or exhaustion
This version of the original TFO+ADX introduces a MACD-style histogram and signal line overlay for clearer momentum and trend visualization.
The Trend Flow Oscillator (TFO+ADX) blends two powerful volume-based tools — the Money Flow Index (MFI) and Chaikin Money Flow (CMF) — along with a normalized Average Directional Index (ADX). The result is a comprehensive momentum and trend strength tool that offers a more precise read on when markets are gaining or losing conviction.
⸻
How It Works
1.Money Flow Index (MFI)
• Measures volume-weighted buying/selling pressure using price and volume.
• Scaled between –1 and +1 for visual clarity.
2.Chaikin Money Flow (CMF)
• Evaluates volume distribution over time — institutional buying (accumulation) or selling (distribution).
• Also scaled between –1 and +1.
3.TFO Composite Line
• Combines MFI and CMF into a single flow reading.
• A signal line (EMA) tracks the trend of this flow.
• A histogram plots the difference between the TFO and its signal, giving clear signals on shifts in momentum.
4.Normalized ADX Overlay
• Shows trend strength on the same scale (–1 to +1).
• ADX > 0 indicates strong trending conditions.
• ADX < 0 signals weak or consolidating conditions.
⸻
Visual Interpretation
1. Histogram Bars
• Green: TFO is above the signal line → bullish momentum accelerating
• Red: TFO is below the signal line → bearish momentum building
• Bar height represents the strength of the momentum shift
2. Signal Line
• Tracks the smoothed trend of the TFO composite
• Histogram crossing above or below zero reflects momentum crossover and can act as entry or exit signals
3. TFO Raw Line (Optional)
• Still available for reference alongside the histogram
• Shows the unsmoothed blended money flow direction (MFI + CMF)
4. Extreme Zones
• Background shading appears when TFO exceeds ±1.0
• Helps highlight areas of stretched or unsustainable momentum, useful for spotting potential reversals or exhaustion
Release Notes
Trend Flow Oscillator (TFO + ADX) – Histogram + SignalThis version of the original TFO+ADX introduces a MACD-style histogram and signal line overlay for clearer momentum and trend visualization.
The Trend Flow Oscillator (TFO+ADX) blends two powerful volume-based tools — the Money Flow Index (MFI) and Chaikin Money Flow (CMF) — along with a normalized Average Directional Index (ADX). The result is a comprehensive momentum and trend strength tool that offers a more precise read on when markets are gaining or losing conviction.
⸻
How It Works
1.Money Flow Index (MFI)
• Measures volume-weighted buying/selling pressure using price and volume.
• Scaled between –1 and +1 for visual clarity.
2.Chaikin Money Flow (CMF)
• Evaluates volume distribution over time — institutional buying (accumulation) or selling (distribution).
• Also scaled between –1 and +1.
3.TFO Composite Line
• Combines MFI and CMF into a single flow reading.
• A signal line (EMA) tracks the trend of this flow.
• A histogram plots the difference between the TFO and its signal, giving clear signals on shifts in momentum.
4.Normalized ADX Overlay
• Shows trend strength on the same scale (–1 to +1).
• ADX > 0 indicates strong trending conditions.
• ADX < 0 signals weak or consolidating conditions.
⸻
Visual Interpretation
1. Histogram Bars
• Green: TFO is above the signal line → bullish momentum accelerating
• Red: TFO is below the signal line → bearish momentum building
• Bar height represents the strength of the momentum shift
2. Signal Line
• Tracks the smoothed trend of the TFO composite
• Histogram crossing above or below zero reflects momentum crossover and can act as entry or exit signals
3. TFO Raw Line (Optional)
• Still available for reference alongside the histogram
• Shows the unsmoothed blended money flow direction (MFI + CMF)
4. Extreme Zones
• Background shading appears when TFO exceeds ±1.0
• Helps highlight areas of stretched or unsustainable momentum, useful for spotting potential reversals or exhaustion
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.