What Is Money Flow Index (MFI)?
The Money Flow Index, sometimes called 'volume-weighted RSI,' incorporates both price and volume to measure buying and selling pressure. Calculated over a lookback (typically 14), it ranges from 0 to 100 — above 80 = overbought, below 20 = oversold.
What makes MFI different from RSI is that it filters out moves on weak volume. A price spike that doesn't have volume behind it doesn't register as strongly in MFI as it would in RSI. This makes MFI more reliable at confirming whether momentum is real or thin.
Divergence on MFI carries more weight than divergence on RSI because MFI is volume-weighted — a divergence implies that buying pressure isn't matching the price action. Useful on liquid markets with reliable volume; less useful on crypto where volume data is sometimes inflated.
Related terms
- RSI (Relative Strength Index) — A momentum oscillator (0-100) measuring the speed and magnitude of recent price changes.
- Volume
- Divergence (Bullish / Bearish) — When price makes a new high or low but a momentum indicator does not — signal of weakening trend.
- OBV (On-Balance Volume) — Cumulative volume gauge tracking buying vs selling pressure.