Indicator - Money Flow Index
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Definition Money Flow Index
Money Flow = [ median price * volume ] = [ (H+B+C)/3) * volume ]
H today's high ; B today's low ; C today's close
If the median price > yesterday's median price then Money Flow is a positive flow
If the median price < yesterday's median price then Money Flow is a negative flow
Then calculate the money ratio \n MR = (MF+/MF -)
MFI = 100 - [100/(1 + MR)]
Interpretation Money Flow Index
If the MFI rises above the 80 level, this should signal that the security will outperform the market and a decrease in the price will take place.
On the contrary, if the MFI falls below the 20 level, then the security should underperform the market and a rise in the price should take place.
