Money Flow Index

Money Flow Index

The Money Flow (MF) is a ratio of positive and negative money flow over time. It is the product of price and volume. Positive/negative MF occur when today’s price is higher/lower than yesterday’s price. The MFI is calculated by dividing positive MF by negative MF for the past n periods. It is then scaled between 0 and 100.

Money Flow Index

Divergence between MFI and price can be indicative of a reversal. In addition, values above/below 80/20 indicate market tops/bottoms.