Money flow index
Money flow index
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Money flow index

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Money flow index

The money flow index (MFI) is an oscillator that ranges from 0 to 100. It is used to show the money flow (an approximation of the dollar value of a day's trading) over several days.

The typical price for each day is the average of high price, the low price and the closing price.

The money flow for a certain day is typical price multiplied by volume on that day.

The money flow is divided into positive and negative money flow.

The money ratio is the ratio of positive money flow to negative money flow.

The money flow index can be expressed equivalently as follows.

This form more clearly shows what the MFI is a percentage of positive money flow to total money flow.

MFI is used to measure the "enthusiasm" of the market. In other words, the money flow index shows how much a stock was traded.

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