Money Flow Index



Money Flow Index Interpretation:

It the Money Flow Index (MFI) rises above the 80 level,this should signal that the security will out-perform the market and a decrease in the price will take place. On the other hand, if the MFI falls below the 20 level, then the security should under-perform the market and a rise in the price should take place.

Money Flow Index Calculation:

Money flow = [median price * volume] = [((today's high+today's low+today's close)/3)* volume]If the median price > yesterday's median price then Money Flow is a negative flow. Then calculate the money ration MR = (MF+/MF -) MFI = 100 - [100 - [100/(1 + MR)]


Return from Money Flow Index to Using Indicators

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