Unit 2 · Understanding Indicators

MFI (Money Flow Index)

Lesson 9 of 125 min5 exercises

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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.

Tip

When MFI shows extreme readings (below 20 or above 80), pay attention - smart money may be positioning.