Money Flow Index formula

What Money Flow Index - MFI Mean?
A momentum indicator that is used to determine the current trend in conviction, by analysis of price and volume of a given security. The MFI is used as a measure of the strength of money going in and out of security, and can be used to predict a trend reversal. The MFI is range bound between 0 and 100 and is interpreted in a similar way as RSI.

Money flow index (MFI)
The money flow index is calculated using the following formula:

Typical Price = (High + Low + Close) / 3
Cash flow = Typical price * Volume
Ratio = Positive Money Money Flow / Negative Money Flow

Note: Positive cash values ​​are created when the typical price is higher than the previous typical cost value. The sum of positive money over the number of periods used to create the indicator is used to create a positive flow of money - the values ​​used in the ratio of money. The opposite is true for the negative cash flow values.

CASH FLOW Index = 100 - (100 / (1 + Money Ratio))

Money Flow Index - MFI
The money flow index is similar to the relative strength index (RSI). The primary difference is that, too, MFI accounts for volume, whereas the RSI only incorporates prices. Many traders watch for opportunities that arise when the MFI moves in the opposite direction from price. This divergence can often be a leading indicator of changing the current trend.