money flow index


MFI. An indicator used to show the percentage of a stock's price on up days compared to the total of up and down days. It is an oscillator of money flow. MFI can be calculated following these steps:

Typical price = (high + low + close)/3
Money flow = typical price * volume
Money ratio = positive money flow / negative money flow
MFI = 100 - (100 / (1+ money ratio)) OR
MFI = positive money flow / (positive and negative money flow) * 100
(Both formulas arrive at the same MFI value.)

Values below 50 indicate that the stock is undersold, while values above 50 indicate that a stock is overbought.
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