Understanding Indicators
MFI (Money Flow Index)
Volume-Weighted RSI
MFI is like RSI but includes volume in the calculation. This makes it a more complete picture of buying/selling pressure.
Reading MFI
MFI Levels:
- Above 80: Overbought (distribution likely)
- Below 20: Oversold (accumulation likely)
Because it includes volume, MFI signals often precede price moves.
- Above 80: Overbought (distribution likely)
- Below 20: Oversold (accumulation likely)
Because it includes volume, MFI signals often precede price moves.
When MFI shows extreme readings (below 20 or above 80), pay attention - smart money may be positioning.
Key Takeaways
- MFI = RSI with volume consideration
- Above 80 = overbought, below 20 = oversold
- Volume weighting makes signals more reliable
- Good for spotting accumulation/distribution