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MFI

Type: mfi • Category: indicators

Description​

Money Flow Index

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
highstringselect the column with highest pricesno
lowstringselect the column with lowest pricesno
closestringselect the column with closing pricesno
volumestringselect the column with volumeno
timeperiodnumberNumber of periods to use for MFI calculationno14

Help​

Money Flow Index (MFI)

Description​

The Money Flow Index (MFI) is a momentum indicator used in financial analysis to measure the inflow and outflow of money into a security over a given period of time. It is calculated by taking into account the price and volume of the security.

What does this worker do?​

This worker calculates the Money Flow Index (MFI) for a given set of price and volume data. It takes the following parameters:

  • dataExp: prices data
  • high: select the column with highest prices
  • low: select the column with lowest prices
  • close: select the column with closing prices
  • volume: select the column with volume
  • timeperiod: Number of periods to use for MFI calculation

How to use it​

To use this worker, simply provide the required parameters and it will calculate the MFI for you. You can use the following example as a guide:

Example usage​

|  high |  low |  close |  volume |
|-------|------|--------|---------|
|  10   |  8   |   9    |   100   |
|  12   |  9   |  11    |   200   |
|  15   | 12   |  14    |   300   |

How to interpret the results​

The MFI is a range-bound indicator that oscillates between 0 and 100. A high MFI value (above 80) indicates that the security is experiencing high buying pressure, while a low MFI value (below 20) indicates that the security is experiencing high selling pressure.

  • Overbought: MFI > 80, the security is considered overbought and may be due for a price correction.
  • Oversold: MFI < 20, the security is considered oversold and may be due for a price rebound.

Additional knowledge​

The MFI was developed by J. Welles Wilder Jr. and is also known as the Volume-Weighted RSI. It is often used in conjunction with other technical indicators to confirm trading signals.

Visualizing the MFI​

For a better understanding of how to use the MFI, you can refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)