MFI (Money Flow Index) — what it is and how to use it in trading
Definition
MFI (Money Flow Index) is a 0-100 oscillator similar to RSI, but factoring in volume as well as price — it compares the money flow on up bars versus down bars over the last period candles.
How it works in the builder
The mfi operand takes a period parameter (default 14). Values below 20 usually mean oversold with volume confirmation, above 80 mean overbought.
What it looks like on the chart
Drawn as a separate panel with levels at 20 and 80, like RSI, but the line's path can diverge noticeably from RSI on bars with unusually high or low volume.
Typical use
Often used as "volume confirmation" for RSI signals. Typical condition: mfi(14) < 20 combined with rsi(14) < 30 — oversold confirmed by both price and volume.
Common pitfalls
On instruments with uneven or spiky volume data (common on some crypto markets), MFI can be noisier than a plain RSI — a sharp volume spike on a single bar can temporarily distort the reading.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.