The money flow index MFI is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. The MFI uses a stock's price and volume to measure trading pressure. Because the MFI adds trading volume to the relative strength index RSI , it's sometimes referred to as volume-weighted RSI.

MFI Stock Price - Maple Leaf Foods Inc. Stock Quote (Canada: Toronto) - MarketWatch

The developers of the MFI, Gene Quong and Avrum Soudack, suggest using a day period for calculations. Step one is to calculate the typical price. Second, the raw money flow is calculated.

The third step is to calculate the money flow ratio using the positive and negative money flows for the previous 14 days. Finally, using the money flow ratio, the MFI is calculated. Formulas for each of these items are as follows:. Positive money flow is calculated by summing up all of the money flow on the days in the period where the typical price is higher than the previous period typical price.

This same logic applies for the negative money flow. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price.

This divergence can often be a leading indicator of a change in the current trend. An MFI of over 80 suggests the security is overbought, while a value lower than 20 suggest the security is oversold.

How to Trade with the Money Flow Index - Tradingsim

While a day period is typically used in calculating the MFI, for simplicity's sake, below is a four-day example. Assume a stock's high, low and closing prices for four days are listed along with volume as:.

Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

Money Flow Index (MFI)

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What is the 'Money Flow Index - MFI' The money flow index MFI is a momentum indicator that measures the inflow and outflow of money into a security over a specific period of time. Formulas for each of these items are as follows: Money Flow Index Calculation Example While a day period is typically used in calculating the MFI, for simplicity's sake, below is a four-day example.

Assume a stock's high, low and closing prices for four days are listed along with volume as: Money Flow Sales To Cash Flow Ratio Price to Free Cash Flow Free Cash Flow Yield Non-Operating Cash Flows Divergence Unconventional Cash Flow Operating Cash Flow Ratio Circular Flow Of Income. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers.

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