Courses / Volatility and Volume Indicators

Money Flow Index (MFI)

A volume-weighted version of the RSI.

MFI uses price and volume to measure buying and selling pressure on a 0 to 100 scale. Readings above 80 are often called overbought and below 20 oversold.

It reads like RSI but includes volume, so it can reflect participation. Divergences are the most common signal.

As always, extremes in strong trends are not automatic reversal signals.

Key takeaways

• RSI with volume, scale 0 to 100
• 80 and 20 are common thresholds
• Divergence is the key signal

Quiz

• MFI includes: Answer: Volume. It adds volume to the RSI idea.
• MFI above 80 is often called: Answer: Overbought. Overbought zone.
• In strong trends extremes: Answer: Can persist. They can last.

Educational content, not financial advice.