Volume & order-flow
Money Flow Index (MFI)
A volume-weighted RSI that measures buying and selling pressure.
What is Money Flow Index (MFI)?
The Money Flow Index (MFI) is a momentum oscillator that, unlike the RSI, factors in volume. It measures the strength of money flowing in and out of an instrument on a 0–100 scale, which is why it's often called a volume-weighted RSI.
How it works
MFI uses the typical price and volume to compute positive and negative money flow, then normalises the ratio to 0–100. Readings above 80 are overbought and below 20 oversold. Because it includes volume, MFI divergence can be a stronger signal than price-only momentum.
How traders use it
- ▸Overbought/oversold: watch the 80/20 extremes.
- ▸Divergence: MFI/price disagreement, backed by volume.
- ▸Confirmation: rising MFI supports a breakout's volume.
- ▸Filter: avoid longs when money flow is fading.
Build Money Flow Index (MFI) without code in Algovex
MFI is a node in Algovex, combine its extremes or divergence with your entries, backtest on volume data, and export.
Key parameters
| Parameter | What it does |
|---|---|
| length | Lookback period (commonly 14). |
Frequently asked questions
What is the difference between MFI and RSI?
RSI uses price only; MFI weights the calculation by volume, so it reflects buying and selling pressure, not just price momentum. Many traders use MFI divergence as a higher-conviction signal. Algovex offers both.