MFI a Volume Indicator in Technical Analysis




Money Flow Index (MFI), a key volume tool which helps to identify a trend momentum, is it valid or not, which helps you to analyse smart money movements. And yes — this indicator is a must learn tool that should be taught in professional Stock Market Trading Coaching Institute and technical analysis classes across India.


Lets discuss about Money Flow Index(MFI)
The Money Flow Index (MFI) is a momentum oscillator that combines price and volume to show whether an asset is being accumulated (bought) or distributed (sold). It moves between 0 and 100 and is often called the volume-weighted RSI.
Unlike the RSI, which only looks at price changes, MFI adds volume to the mix — giving more accurate signals.

MFI = 100 − [100 ÷ (1 + Money Flow Ratio)]
📊 Why MFI is Better Than Just RSI
Most beginners learn RSI first — but the Best Institute for Stock Market Education will show you how MFI is more reliable.

- RSI is used to give trading signal by tracking prices only, on the other hand MFI uses volume with RSI to give trading signals, Thus making it a more efficient tool for intraday traders.

💡 Technical analysis classes often teach both — but emphasize MFI for real trading decisions.

How to Use this tool :
1. Overbought/Oversold Zones
Above 80 = Overbought

Below 20 = Oversold

2. Divergence Detection
Bearish Divergence: Price makes higher highs, MFI drops

Bullish Divergence: Price makes lower lows, MFI rises

3. Volume-Backed Breakouts
When MFI rises along with price, it indicates strong buying pressure — a classic swing trading entry point.

MHV Education, The Best Stock Market Institutes in India, we break down tools like MFI, RSI, MACD, and Volume Analysis into real-use scenarios using live market data.

🎯 Final Word: MFI Reveals the Flow of Smart Money
In markets, price is just the headline — volume is the story behind it.

Learning the Money Flow Index will help you make better trading decisions, avoid false breakouts, and trade like professionals.
➡️ Visit MHV Education to start your journey today.

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