Trading with Money Flow Index

July 19, 2023

The Money Flow Index is a volume indicator that helps in measuring the trading pressure on a particular asset, usually a stock, by analysing the price and volume of trading. 

The MFI acts as an oscillator that ranges between 0 and 100. It helps us in signalling whether the stock is in the overbuying or overselling zone as well as divergences between the prices and this indicator helps in predicting a reversal in market trends.