Money Flow Index Indicator | MFI | Better Then RSI?

1 year ago
19

MFI money flow is a technical indicator used in trading that helps investors understand the flow of money into and out of a security. It is considered one of the most reliable indicators of a trend's strength and can be used to identify potential buy and sell signals.

If you're new to trading or looking to improve your trading strategies, understanding MFI money flow is a must. By monitoring the MFI money flow, you can gain insights into the market sentiment and identify potential price trends, making it a valuable tool for both short-term and long-term traders.

At its core, MFI money flow measures the volume and momentum of money flowing into and out of a security over a specific period. It is calculated by taking into account the typical price, volume, and an indicator of the money flow itself.

The resulting MFI value is plotted on a chart, where traders can use it to identify potential price trends. When the MFI value is above 80, it is considered overbought, indicating a potential downward trend. Conversely, when the MFI value is below 20, it is considered oversold, indicating a potential upward trend.

In conclusion, MFI money flow is an essential technical indicator used in trading to understand the flow of money into and out of a security. By monitoring the MFI money flow, traders can identify potential price trends, making it a valuable tool for both short-term and long-term traders. So, if you're looking to improve your trading strategies, understanding MFI money flow is a must.

Chapters
0:00 Volume and Price
0:24 MFI Strategy
0:42 Trading Rules
1:11 Multibagger
1:19 Backtest Statistics
1:36 Matrix
1:50 RSI Strategy

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