Indicators · Intermediate

Money Flow Index Basics

A 1-minute lesson from the MarketPro academy, one of 22 in trading indicators.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

The Money Flow Index (MFI) is sometimes described as a volume-weighted version of RSI, combining both price and volume into a single oscillator scaled from 0 to 100. Where RSI only considers closing price changes, MFI incorporates volume into its calculation, on the idea that a price move accompanied by strong volume carries more weight than the same move on light volume.

The Money Flow Index (MFI) is sometimes described as a volume-weighted version of RSI, combining both price and volume into a single oscillator scaled from 0 to 100.

How MFI Differs From RSI

Where RSI only considers closing price changes, MFI incorporates volume into its calculation, on the idea that a price move accompanied by strong volume carries more weight than the same move on light volume. Readings above 80 are commonly labeled overbought and below 20 oversold, similar conventions to RSI, though the underlying calculation accounts for volume as well as price.

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Because it includes volume, MFI can diverge from RSI readings at the same point in time — a market can look overbought on RSI while MFI suggests less conviction behind the move due to lighter volume, or vice versa
Divergence between MFI and price is a commonly watched signal, similar to RSI or MACD divergence, and benefits from the added volume dimension
MFI's usefulness depends on reliable volume data — in markets where volume reporting is incomplete or fragmented across venues, MFI readings may be less representative than in centralized, exchange-traded markets

Like other oscillators, MFI extremes can persist through a strong trend rather than immediately reversing, so it is best used alongside trend context and other confirmation rather than as a standalone overbought/oversold trigger.

Lesson 22 of 22 in Trading indicators

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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