MFI (Money Flow Index)
A volume-weighted momentum indicator, sometimes called a volume-weighted RSI.
Definition
The Money Flow Index combines price and volume to measure buying and selling pressure on a 0–100 scale. It is often described as a volume-weighted RSI because it adds trading volume to the momentum picture. Assetick computes MFI for DSE stocks and offers a scanner preset for rising money flow.
How it is calculated
MFI uses the typical price (high plus low plus close, divided by three) multiplied by volume to derive positive and negative money flow, then normalises the ratio onto a 0–100 scale over a chosen period, usually 14 days.
How to read it
MFI above 80 is considered overbought and below 20 oversold — a wider threshold than RSI because volume adds conviction. Rising MFI while price rises confirms buying strength; MFI falling while price rises can warn of a weakening move.
For DSE investors
Because MFI incorporates volume, it can be especially informative on the DSE where volume spikes often accompany news or block trades. Assetick's 'money flow rising' scanner preset highlights stocks where volume-backed buying pressure is building.
Frequently asked questions
How is MFI different from RSI?+
RSI uses price alone, while MFI adds trading volume. This is why MFI is sometimes called a volume-weighted RSI — a volume-backed move carries more conviction than price movement alone.
What MFI level signals overbought?+
An MFI above 80 is traditionally considered overbought and below 20 oversold. These thresholds are wider than RSI's 70/30 because the volume component adds weight.