| MFI stands for Money Flow Index, a technical indicator that uses price and volume data to measure buying and selling pressure in financial markets. Gene Quong and Avrum Soudack developed it in the late 1990s as a variation of the more widely known Relative Strength Index (RSI) indicator. The indicator value oscillates between 0 and 100. Values above 80 are considered overbought, while values below 20 are oversold. The Money Flow Index often identifies potential trend reversals and confirms existing trends. When the MFI reaches overbought or oversold conditions, it may signal a possible change in trend. Traders may also look for divergences between the MFI and the asset price as potential buy or sell signals. |
