The MFI is a ratio of positive and negative money flow over time.
MFI(HLC, volume, n = 14)
Object that is coercible to xts or matrix and contains High-Low-Close prices. If only a univariate series is given, it will be used. See details.
Vector or matrix of volume observations
Number of periods to use.
Money Flow (MF) is the product of price and volume.
Positive/negative MF occur when today's price is
higher/lower than yesterday's price. The MFI is
calculated by dividing positive MF by negative MF for the
n periods. It is then scaled between 0 and
MFI is usually calculated using the typical price, but if a univariate series (e.g. Close, Weighted Close, Median Price, etc.) is provided, it will be used instead.
A object of the same class as
volume or a vector (if
containing the MFI values.
Divergence between MFI and price can be indicative of a reversal. In addition, values above/below 80/20 indicate market tops/bottoms.
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