Money Flow Index [MFI]

Creator: Gene Quong and Avrum Soudack

EMI period: 20

MI period: 25

Average period: 10

In the Money Flow Index indicator, there are two different lines plotted below the chart.

1 – Green line represents Money Flow Index

2 – Red line represents the Average line of MFI

The MFI is a momentum indicator similar to the RSI, but it also takes into account volume.

A rising MFI indicates buying pressure and a bullish trend. A falling MFI indicates a bearish trend and selling pressure.

Click here to learn more about the MFI indicator. A seesaw example is used to explain the MFI indicator in the shelf.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.