Money Flow Index (MFI)
Another volume indicator, money flow index (MFI) uses daily volume to weight a popular momentum indicator, relative strength index, or RSI (see Chapter 12, “Momentum Oscillators—Duration and Speed of a Trend”). This creates an index reflecting overbought or oversold conditions. MFI is interesting to analysts because it combines price-related momentum with the effects of volume.
The index is set to reflect a value between 0 and 100, and assumes that any index movement above 80 shows an overbought condition; index movement below 20 represents an oversold condition. These key reversal points can be used in trends of any length but tend to be especially useful in managing short-term volatility and movement of swing trends. ...
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