Trading with money flow index


Trading with money flow index


The developers of the MFI, Gene Quong and Avrum Soudack, suggest using a 14-day period for calculations. Step one is to calculate the typical price. Once you move pass the fancy name, the money flow technical indicator essentially acts as a momentum oscillator that calculates the volume and price data in order to measure buying and selling pressure.By calculating the indexed value based on the stock price and volume of the number of bars specified in the money indes index settings, it plots a line on the chart that oscillates between the 0 and 100 level.

The indicator was developed by Ineex Soudack and Gene Quong as a volume-weighted variation of the RSI.The Money Flow Index is calibrated from 0 to 100, and creates a money flow ratio (Positive Money Flow to Negative Money Flow) over a time period. This money flow ratio inndex what is pushed into an RSI formula to create a momentum indicator.




Flow trading with index money

Trading with money flow index

Flow trading with index money



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