Volume indicators
MFI: Money Flow Index
A volume-weighted RSI: from 0 to 100, it shows whether money has been flowing into or out of the market.
La idea en pocas palabras
RSI looks only at price changes. MFI also counts how much was traded, so a rise on heavy activity counts more than a rise on light activity.
Cómo se calcula
Typical price times volume is the "money flow". Flows on rising candles and falling candles are summed over 14 candles and compared.
Typical price TP = (high + low + close) ÷ 3, flow = TP × volume
Positive flow = sum of flows where TP rose; negative flow = where TP fell
MFI = 100 − 100 ÷ (1 + positive ÷ negative)Cómo usarlo
- Above 80: heavy buying, possibly overextended; below 20: heavy selling.
- Divergences with the price are its most respected signal.
Sacar conclusiones
- Like RSI, MFI can stay high in strong trends.
Ejemplo
Silver makes a new high but MFI peaks at 68, below its previous 85: the new high came with less money behind it.
Los precios de los ejemplos son ilustrativos.
Ten cuidado con
- On currencies, metals and CFDs there is no central exchange volume. The chart uses "tick volume", the number of price changes in each candle, which follows real activity closely but is not the number of contracts traded.
Un poco de historia
Created by Gene Quong and Avrum Soudack.
Solo contenido educativo. Ningún indicador ni patrón predice el futuro, y nada de lo aquí expuesto es asesoramiento de inversión.