Q: Key levels

| Level | Meaning | |-------|---------| | > 80 | Overbought zone | | 50 | Middle line (equilibrium) | | < 20 | Oversold zone |

Q: Long entry (Buy)

- MFI returns from zone below 20 (leaving oversold) - MFI crosses above 50 (buyer pressure increasing)

Q: Short entry (Sell)

- MFI returns from zone above 80 (leaving overbought) - MFI crosses below 50 (seller pressure increasing)

Q: Signal examples

| Condition | Use case | |-----------|----------| | `MFI(14) > 80` | Overbought, possible reversal down | | `MFI(14) < 20` | Oversold, possible reversal up | | `MFI(14) crosses above 20` | Buy signal (leaving oversold) | | `MFI(14) crosses below 80` | Sell signal (leaving overbought) | | `MFI(14) crosses above 50` | Bullish momentum building | | `MFI(14) crosses below 50` | Bearish momentum building |

Q: Best combinations

- **MFI + RSI**: Double confirmation of overbought/oversold - **MFI + MACD**: MFI for zones, MACD for trend direction - **MFI + Volume**: Additional volume confirmation

Q: Parameters

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Number of candles for money flow calculation |

Q: Availability

- Crypto Futures / Spot / Stocks — available - Forex — **not available** (requires volume data)

Q: Tips

- MFI is effective paired with RSI or MACD to filter false signals - In strong trends, use 30/70 levels instead of 20/80 - MFI divergence with price can signal potential reversal - Volume spikes make MFI signals more reliable - Not available for Forex where real volume data is inaccessible

Question 1

What is MFI?

Accepted Answer

Money Flow Index (MFI) is a volume-weighted RSI that measures buying and selling pressure. Unlike RSI which only considers price, MFI incorporates volume data, making it more sensitive to actual market activity. Values range from 0 to 100.

Question 2

How it works

Accepted Answer

``` TP = (High + Low + Close) / 3 Raw Money Flow = TP × Volume If TP > TP_prev → Positive Money Flow If TP < TP_prev → Negative Money Flow Money Flow Ratio = Sum(Positive MF, period) / Sum(Negative MF, period) MFI = 100 - (100 / (1 + Money Flow Ratio)) ```

Question 3

Key levels

Accepted Answer

| Level | Meaning | |-------|---------| | > 80 | Overbought zone | | 50 | Middle line (equilibrium) | | < 20 | Oversold zone |

Question 4

Long entry (Buy)

Accepted Answer

- MFI returns from zone below 20 (leaving oversold) - MFI crosses above 50 (buyer pressure increasing)

Question 5

Short entry (Sell)

Accepted Answer

- MFI returns from zone above 80 (leaving overbought) - MFI crosses below 50 (seller pressure increasing)

Question 6

Signal examples

Accepted Answer

| Condition | Use case | |-----------|----------| | `MFI(14) > 80` | Overbought, possible reversal down | | `MFI(14) < 20` | Oversold, possible reversal up | | `MFI(14) crosses above 20` | Buy signal (leaving oversold) | | `MFI(14) crosses below 80` | Sell signal (leaving overbought) | | `MFI(14) crosses above 50` | Bullish momentum building | | `MFI(14) crosses below 50` | Bearish momentum building |

Question 7

Best combinations

Accepted Answer

- **MFI + RSI**: Double confirmation of overbought/oversold - **MFI + MACD**: MFI for zones, MACD for trend direction - **MFI + Volume**: Additional volume confirmation

Question 8

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Number of candles for money flow calculation |

Question 9

Availability

Accepted Answer

- Crypto Futures / Spot / Stocks — available - Forex — **not available** (requires volume data)

Question 10

Tips

Accepted Answer

- MFI is effective paired with RSI or MACD to filter false signals - In strong trends, use 30/70 levels instead of 20/80 - MFI divergence with price can signal potential reversal - Volume spikes make MFI signals more reliable - Not available for Forex where real volume data is inaccessible