MOF Defined


Indicator Reference:

Bollinger Bands: 8, 1.8
Fast stochastic: 7,3,3 exponential (smoothed for Ensign)
Slow stochastic: 21, 10, 4 exponential (smoothed for Ensign)



MOF is an acronym for money on the floor, a fancy name coined some months ago which has stuck. The thought was that it is money just lying there on the floor waiting to be picked up, or in other words, a very high percentage trade.


The trade works in any time frame, although I believe it is especially suited for tick charts 133t and higher. There will usually be 2-8 such setups on a 210 tick chart (my favorite) in a typical day.


The setup is simply described as the first band touch after the slow stochastic has crossed from up to down or down to up, preferably from an overbought or oversold condition. For example, for a long, the slow stochastic drops to below 30 and then the two lines cross upward, price goes up a bit then pulls back to touch the lower bollinger band. If the slow stochastic is still crossed up at that point, the long entry is entered at the band, or as close to it as you can get. This situation will usually be the first higher low marking the end of a downtrend. There are no other specific rules. MOF setup examples are shown on the charts below.