MoneyFlowIndex

Return value of the Money Flow Index indicator, over the last N periods.

Syntax:

Calculation :

Money Flow = [typical price * volume] = [(H+L+C)/3 * volume]

If the median price > yesterday’s median price then Money Flow is a positive flow.

If the median price < yesterday’s median price then Money Flow is a negative flow.

Then calculate the money ratio :

MR = (MF+ / MF-)

MFI = 100 – [100 / (1+ MR)]

Interpretation :

If the MFI rises above the 80 level, this should signal that the security will outperform the market and a decrease in the price will take place. On the contrary, if the MFI falls below the 20 level, then the security should underperform the market and a rise in the price should take place.

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