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Re: crude-dude post# 31764

Wednesday, 12/08/2010 4:21:27 PM

Wednesday, December 08, 2010 4:21:27 PM

Post# of 45174
Folks please be advised the when trading any stock regardless of PPS or CAP size the MFI is a helpful tool but by no means should it be your only instrument to determine whether or not a stock is a buy or sell. There are many things that can effect the performance of a stock all DD should be done at your soul discretion.


What Does Money Flow Index - MFI Mean?
A momentum indicator that is used to determine the conviction in a current trend by analyzing the price and volume of a given security. The MFI is used as a measure of the strength of money going in and out of a security and can be used to predict a trend reversal. The MFI is range-bound between 0 and 100 and is interpreted in a similar fashion as the RSI.

Investopedia explains Money Flow Index - MFI
The money flow index is similar to the relative strength index (RSI). The fundamental difference is that the MFI also accounts for volume, whereas the RSI only incorporates price. Many traders watch for opportunities that arise when the MFI moves in the opposite direction as the price. This divergence can often be a leading indicator of a change in the current trend.

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