What is MFI?
A volume-weighted RSI that measures buying and selling pressure by combining price and volume.
Think of it like this
Like RSI but accounting for how much money is actually flowing in or out, not just price direction.
Formula
MFI = 100 - (100 ÷ (1 + Money Flow Ratio))- Positive Money Flow: Sum of volume on up days × typical price
- Negative Money Flow: Sum of volume on down days × typical price
Why it matters
- Combines price and volume for stronger signals
- Identifies overbought/oversold with volume confirmation
- Divergences are more reliable than RSI
- Shows actual money flowing in/out
What's a good value?
> 80
Overbought
Heavy buying pressure, potential pullback
50-80
Bullish
Positive money flow
20-50
Bearish
Negative money flow
< 20
Oversold
Heavy selling pressure, potential bounce
Real-world example
MFI at 15 with price making new lows could signal a volume-confirmed oversold bounce opportunity.
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