Money Flow Index (MFI)
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    Money Flow Index (MFI)

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    Article summary


    Money Flow Index (MFI) is a momentum oscillator that measures the ratio of money flowing into and out of a security over a specified period. MFI is similar to Relative Strength Index (RSI) but unlike RSI, it incorporates not only a Typical Price but also volume data. The index is bounded to the 0 to +100 scale, where the readings above 80 indicate overbought (bearish signal) and the readings below 20 suggest oversold (bullish signal) prices.

    1. Money Flow = TP x Volume
    2. Money Ratio = Positive Money Flow / Negative Money Flow
    3. Money Index Flow = 100 - [100 / (1 + Money Ratio)]

    where:
    TP – Typical Price
    Positive Money Flow – today's Typical Price is greater than yesterday's Typical price; sum of the positive money over the specified period
    Negative Money Flow – today's Typical Price is less than yesterday's Typical price; sum of the negative money over the specified period

    Kairi Relative IndexMoney Flow Index

    INPUTS

    InputDescription
    LengthThe number of bars used to calculate the Movey Flow Index
    OverboughtThe number to fix the overbought level at
    OversoldThe number to fix the oversold level at

    PLOTS

    The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

    PlotDescription
    MFIdxThe Money Flow Index plot
    OverBoughtThe overbought level
    OverSoldThe ovelsold level
    Color

    Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

    Palette

    To create a custom color:

    1. Clickto open the color picker
    2. By using the slider at the bottom, adjust the main color
    3. Then, set a shade for the main color on the palette

    The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

    Weight
    Change the value (in px) to adjust the thickness of the plot.
    Type
    The following plot types are available:
    • Linear. The plot is displayed as a line.
    • Column. The plot is displayed as a histogram.
    • DifferenceThe plot is displayed as a line which represents the difference between High and Low prices of the bar.
    • PointsThe plot is displayed as points.
    • Text above candleThe plot is displayed as the price labels above candles on the chart.
    • Text below candleThe plot is displayed as the price labels below candles on the chart.
    • Triangle above candleThe plot is displayed as triangles above candles on the chart.
    • Color candle. The candles on candle-type charts are highlighted with specified colors.

    OVERLAYING

    Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

    Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE