Blog : MFI - Money Flow Index Indicator
MFI - Money Flow Index
The Money Flow Index (MFI) is a technical analysis tool that measures buying and selling pressure by analyzing both price and volume. It generates a value plotted as a line within a range of 0-100, making it an oscillator. Rising MFI indicates increased buying pressure, while falling MFI indicates increased selling pressure. The MFI can signal overbought and oversold conditions, divergences, and failure swings.
| MFI Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Period | 14 | Period | 14 |
| Source | hlc3 | Source | hlc3 |
| Buy Threshold | 20 | Buy Threshold | 20 |
| Sell Threshold | 80 | Sell Threshold | 80 |
| MFI | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | MFI crossover Buy Threshold | MFI crossunder Buy Threshold | MFI crossunder Sell Threshold | MFI crossover Sell Threshold |
| Mean Reversion | MFI crossunder Buy Threshold | MFI crossover Sell Threshold | MFI crossover Sell Threshold | MFI crossunder Buy Threshold |
| MFI | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | MFI >= Buy Threshold | MFI <= Buy Threshold | MFI <= Sell Threshold | MFI >= Sell Threshold |
| Mean Reversion | MFI <= Buy Threshold | MFI >= Sell Threshold | MFI >= Sell Threshold | MFI <= Buy Threshold |