MFI (Money Flow Index)

The MFI (Money Flow Index) is a momentum indicator that uses an asset's price and volume to identify overbought or oversold conditions. It is similar to the Relative Strength Index (RSI), but it also incorporates volume, which makes it a leading indicator of price trends. The MFI compares the amount of money flowing into an asset versus the amount of money flowing out of it. A high MFI suggests buying pressure, while a low MFI suggests selling pressure.

Arguments

Useful Signal Expressions

1. MFI Oversold

Signal:

mfi(14).lt(20)

Explanation: The Money Flow Index with a period of 14 is below 20, which can indicate an oversold condition, suggesting a potential buying opportunity.

2. MFI Overbought

Signal:

mfi(14).gt(80)

Explanation: The Money Flow Index with a period of 14 is above 80, which can indicate an overbought condition, suggesting a potential selling opportunity.

3. MFI Rising

Signal:

mfi(14).rising(3)

Explanation: The Money Flow Index is rising for 3 consecutive periods, suggesting increasing buying pressure and bullish momentum.

4. MFI Bearish Divergence

Signal:

close().rising(5).and(mfi(14).falling(5))

Explanation: The closing price is rising over the last 5 periods while the MFI is falling, indicating a bearish divergence. This suggests that the upward trend might be losing momentum and a reversal could be imminent.