MFI (Money Flow Index)

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.

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))

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

Long entry (Buy)

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

Short entry (Sell)

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

| 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 |

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

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

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

• 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