Money Flow Index (MFI)
The MFI is a volume-weighted momentum oscillator that measures buying and selling pressure using both price and volume data. It is sometimes called the "volume-weighted RSI" because it incorporates volume into the calculation.
How it works: The MFI calculates a ratio of positive money flow to negative money flow over a specified period, then converts it to an oscillator ranging from 0 to 100. Rising MFI indicates increasing buying pressure; falling MFI indicates increasing selling pressure.
Settings in block algo flex
| Setting | Description | Default |
|---|---|---|
| Use MFI? | Enable/disable the indicator | Off |
| Length | Number of periods for calculation | 14 |
| Timeframe | Timeframe for calculation | Chart |
| Buy Condition | MFI threshold for buy (e.g., "Less Than 20") | Less Than 20 |
| Sell Condition | MFI threshold for sell (e.g., "Greater Than 80") | Greater Than 80 |
How to Interpret
- MFI < 20 — Oversold; potential buying opportunity
- MFI > 80 — Overbought; potential selling opportunity
- Divergence — If price makes a new high but MFI does not, it may signal weakening momentum
Pro Tip: Because MFI incorporates volume, it can provide earlier and more reliable reversal signals than price-only oscillators like RSI. It is especially useful on assets with consistent volume data.