MFI (Money Flow Index)

MFI is the volume-weighted cousin of RSI. Learn how it confirms oversold/overbought conditions with volume and why it's a stricter exhaustion signal.

What is MFI (Money Flow Index)?

Money Flow Index (MFI) is the volume-weighted cousin of RSI: same 0–100 scale, but each period's contribution is weighted by volume. MFI below 20 indicates volume-confirmed oversold conditions — a stricter exhaustion signal than RSI oversold because the seller has actually heavy traded, not just dribbled price lower.

How Traders Use MFI (Money Flow Index)

  • Volume-confirmed exhaustion: requires both price weakness AND heavy selling volume to register oversold (below 20).
  • Stricter than RSI: filters out the dribble-down moves that fool RSI.
  • Above 80 = volume-confirmed overbought: heavy buying volume exhausting.
  • Divergences carry more weight: MFI divergence is a higher-quality signal than RSI divergence because volume confirms.

Where We Use MFI (Money Flow Index) in Our Penny Stock Scans

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