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The Money Flow Index is an oscillator used by technical traders to identify overbought and oversold markets. The MFI is also applied to help spot divergences, trend reversals, and failure swings.
The indicator takes into account both price and volume information, which is what makes it different from the majority of other oscillators. Especially the Relative Strength Index, which incorporates just price data. Analysts refer to the MFI as a volume-weighted RSI.
0:00 Music Intro
0:13 Intro
1:23 Disclaimer
1:38 The Money Flow Index
3:00 What it measures
4:00 Uses of the MFI
5:05 Calculations
7:00 Reading the index
10:28 Divergence strategy
11:51 Failure swings
13:22 Compared to the RSI
14:44 Final Thoughts
Read more about it on our blog
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What is The Money Flow Index and How To Read It?
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