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ACC 1599.30 (0.34%) Link
Symbol     LTP Chng%
HCC 15.20   + 18.75
WELCORP 140.80   + 11.48
SHK 219.40   + 9.15
PFS 18.25   + 7.99
JINDALSAW 85.45   + 7.08
Symbol     LTP Chng%
GESHIP 284.55    -6.12
FEDERALBNK 81.50    -5.51
TTKPRESTIG 5962.80    -5.04
GRAPHITE 1041.75    -5.00
TNPL 300.50    -4.27
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Money Flow Index (MFI)

Introduction

MFI is a momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security.

The money flow index is similar to the relative strength index. The main difference between MFI and RSI is that the MFI also accounts for volume, whereas the RSI do not accounts for volume. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price. This divergence can often be a leading indicator of a change in the current trend.

The Money Flow Index (MFI) is an oscillator that uses both price and volume to measure buying and selling pressure. MFI was created by Gene Quong and Avrum Soudack, MFI is also known as volume-weighted RSI. MFI starts with the typical price for each period. Money flow is positive when the typical price rises (buying pressure) and negative when the typical price declines (selling pressure).

Formula

Typical Price = ( High + Low + Close ) / 3
Raw Money Flow = Typical Price * Volume
Money Flow Ratio = ( 14-period Positive Money Flow ) / ( 14-period Negative Money Flow )
Money Flow Index = 100 - 100 / ( 1 + Money Flow Ratio )

Advantage

MFI is a momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security.

Sample Calculation

Technical chart for MFI

Technical Indicators

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