Advanced Indicators Expansion Pack:
MFI - Money Flow Index Indicator
MFI is a momentum based indicator, similar to other momentum based indicators such as the RSI, %R, and CCI. MFI does incorporate a more rigid calculation, giving the tell tale signs of a more rigid line, giving a better indication of money flowing in or out of any given security
Formula:
Money Flow = (Typical Price) x (Volume)
Buy / Sell Signals
Buy signals are generated when the MFI line crosses below the threshold line and then “re-enters” the center of the channel. This is an indication that the market is exiting the oversold region and a bullish trend is to ensue.
A sell signal is generated when the MFI line crosses above the threshold line and then “re-enters” the center channel. This is an indication that the market is exiting the overbought region and a bearish trend is probable.