Money Flow Index (MFI)

Also known as "the RSI that accounts for volume". MFI is an indicator that combines volume and price to carry out its analysis. It is a momentum indicator and can also be considered as a volume one. It measures the flow of money into and out of an asset together with price changes to identify oversold and overbought zones. Overbought zones are areas where the price and volume have risen a lot in a small interval of time. Then, suggesting that the price is overbought and that it can have a trend reversal or correction. Therefore, signaling sells. Oversold zones are the opposite. They are areas where the price and volume have decreased suddenly. Usually, they are interpreted as buy points since the price is likely to gain bullish momentum after that fall.

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