The Money Flow Indicator for American Green Inc (ERBB) has touched below 30 and has found a place on investor’s radar as it potentially nears the key 20 mark. The MFI indicator is an oscillator which ranges between fixed values of 0 and 100 and as with most oscillators divergences form a major part of trading with the MFI indicator. Traders look for divergence between the indicator and the price action. If the price trends higher and the MFI trends lower (or vice versa), a reversal may be imminent. Market tops tend to occur when the MFI is above 70 or 80. Market bottoms tend to occur when the MFI is below 20.
Investors should however be wary of trading these levels blindly. As the warning goes, an overbought market can remain overbought for an extended period. Strong trends can present a problem for these classic overbought and oversold levels. The MFI can become overbought, and prices can simply continue higher when the uptrend is strong. Conversely, the MFI can become oversold, and prices can simply continue lower when the downtrend persists. Like the RSI, this indicator is best used in conjunction with another indicator as confirmation.
Investors might be interested in taking a closer look at additional stock technical levels. After a recent check, American Green Inc (ERBB) has a 14-day ATR of 0.00. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may help traders to determine the strength of a breakout or reversal in price. It is important to mention that the ATR was not designed to calculate price direction or to predict future prices.
Currently, the 14-day ADX for American Green Inc (ERBB) is sitting at 14.99. Generally speaking, an ADX value from 0-25 would indicate an