Money Flow Index¶
Indicators · Volume
Volume-weighted RSI — momentum with trade intensity.
The Money Flow Index (MFI) is essentially RSI with volume baked in — it's often called the "volume-weighted RSI." Like RSI it's a 0–100 oscillator that flags overbought and oversold conditions, but it weights each move by how much volume traded, so a push higher on heavy volume registers far more strongly than the same push on thin volume. That makes its extremes more meaningful: they reflect not just price stretch but conviction.
How it works¶
For each bar the block computes typical price (high + low + close) / 3 and multiplies by volume to get raw money flow. Over the Period (default 14) it sums the money flow on up-days versus down-days and turns the ratio into a 0–100 line — exactly the RSI construction, but on money flow instead of price change. Overbought (80) and Oversold (20) thresholds (a touch wider than RSI's usual 70/30) mark the extremes, with matching OB/OS signals.
When to use it¶
Use MFI like RSI but when you want volume to vote. Its overbought/oversold reads carry more weight because they incorporate participation, and its divergence with price is a high-quality signal — price making a new high while MFI doesn't means the move lacks volume support. It shines in ranges for fading extremes and at trend ends for spotting exhaustion. As a bounded oscillator it suffers the usual trap: pinned at an extreme in a strong trend means strength, not reversal. On forex it uses tick volume.
Example¶
Volume-confirmed reversal: wire bars into MFI, take the OS signal with MFI turning up via a Crosses Above, and route to a Buy Signal, gated to a non-trending regime by ADX / DMI. Protect with a Fixed Stop-Loss and backtest in the Tester.
Tips & gotchas¶
- RSI with volume. Same 0–100 reading, but conviction-weighted — its extremes mean more.
- Divergence is the gem — MFI/price disagreement flags moves running on empty.
- 80/20 by convention — slightly wider than RSI; tune per asset.
- Don't fade a trend — a pinned MFI is momentum; filter the regime.
Related blocks¶
Inputs¶
| Socket | Type | What to wire in |
|---|---|---|
| Bars | bars |
Price bars |
Outputs¶
| Output | Type | Plots as | Description |
|---|---|---|---|
| MFI | series |
Line · sub-pane | MFI (0..100) |
| OB | signal |
— | Above overbought threshold |
| OS | signal |
— | Below oversold threshold |
Parameters¶
| Parameter | Type | Default | What it does |
|---|---|---|---|
| Period | number · 2–200 | 14 |
|
| Overbought | number · 50.0–100.0 | 80.0 |
|
| Oversold | number · 0.0–50.0 | 20.0 |
|
| Line color | colour | #aed581 |
Chart guides
This indicator draws reference level(s): overbought, oversold.
Reference auto-generated from the block catalog · category Indicators.