Money Flow Index is a technical indicator. It indicates the rate at which money is invested into a security and then withdrawn from it. Interpretation and calculation is similar to Relative Strength Index with the only difference that volume is important to MFI. While analyzing the money flow index, one needs to take into consideration the following points: If prices … [Read more...]
Money Flow Index : The Concept
The Money Flow Index is used as a momentum indicator that is actually similar to the Relative Strength Index in both interpretation and calculation. Though this is true but, MFI is a more rigid indicator in that it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security. It compares negative money flow to positive money flow … [Read more...]