Money Flow Index (MFI)
Volume-weighted RSI that measures buying and selling pressure; above 80 is overbought, below 20 oversold, over a 14-period default.
Formula
Typical Price = (H + L + C) / 3; Raw Money Flow = Typical Price × Volume; Money Flow Ratio = Positive MF / Negative MF; MFI = 100 − 100 / (1 + Money Flow Ratio)
The MFI combines price direction with volume to produce a bounded 0–100 oscillator — essentially a volume-aware RSI. Each bar's typical price ((H + L + C) / 3) determines whether money flow is "positive" (typical price higher than prior) or "negative", then volume weights it.
The ratio of positive to negative money flow over 14 periods creates the index. Readings above 80 signal overbought; below 20, oversold. Divergence between MFI and price is often a stronger warning than price-only signals because it requires volume confirmation.
Example
A tech stock rallies to a new high, but MFI peaks at 68 — lower than the 84 reading at the prior high. This bearish divergence, with reducing volume participation on the new high, leads swing traders to reduce long exposure.
Related Terms
Accumulation/Distribution Line
Running total of volume adjusted for where the close falls within each bar's range; divergence with price highlights accumulation or distribution.
IntermediateChaikin Money Flow
Volume-weighted measure of buying/selling pressure over 20–21 periods; positive values suggest accumulation, negative values distribution.
IntermediateForce Index
Combines price direction, magnitude of move, and volume into a single oscillator; crosses above zero signal buying force, below signal selling force.
IntermediateOn-Balance Volume (OBV)
Cumulative volume indicator that adds volume on up days and subtracts it on down days to reveal whether volume is confirming a price trend.
BeginnerRelative Strength Index (RSI)
Momentum oscillator (0–100) that flags overbought conditions above 70 and oversold below 30 over a default 14-period lookback.
BeginnerStochastic RSI
RSI of RSI — applies the Stochastic formula to RSI values for a hyper-sensitive oscillator that generates more signals than either parent indicator.
IntermediateVolume Oscillator
Percent difference between a fast and slow EMA of volume; above zero means short-term volume exceeds long-term average, signalling heightened activity.
Beginner