Money Flow Index (MFI)
A technical oscillator that uses price and volume data for identifying overbought or oversold signals.
Usage
Use as a volume-weighted RSI. Divergences between MFI and price can signal potential reversals, especially when the MFI is in extreme territory (>80 or <20).
Background
The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into an asset over a specific period of time. It is related to the RSI but incorporates volume, whereas the RSI only considers price. — Investopedia
Parameters
timeperiod(default: 14): Lookback period
Formula
[ \text{Money Ratio} = \frac{\text{Positive Money Flow}}{\text{Negative Money Flow}} \ MFI = 100 - \frac{100}{1 + \text{Money Ratio}} ]