Educational Post
Money flow index
Money Flow Index (MFI) is a movement and volume indicator which analyses both time and the price for measuring the trading pressure – buying or selling.
It is also known as the volume-weighted Relative Strength Index (RSI), as it includes volume, unlike RSI, which only incorporates price.
The Money Flow Index (MFI) can be interpreted similarly to RSI. Trading signals are generated by this indicator when the stock signals bullish or bearish divergence, crossovers and when the price is in the overbought or oversold zone.
