Money Flow Index: MFI analyses tutorial with 4H candlesticks

BINANCE:BTCUSDT   Bitcoin / TetherUS
MFI or Money Flow Index as a strategy is quite similar to RSI or Relative Strength Index . The key differentiator for MFI is the consideration of volume .

  • Money Flow Index oscillator:
  • MFI uses both price and volume to measure buying and selling pressure.
  • MFI oscillates between 0 to 100.
  • Intuitively, the volume-weighted feature makes MFI a comparatively better 'Lead' indicator than the RSI .
  • Most reversals can be identified and acted upon best through the Money Flow Index oscillator.

MFI above 80 indicates Overbought territory. It suggests that the underlying asset is driven by a buying pressure.
MFI below 20 indicates Oversold territory. It indicates a selling pressure.

MFI crossing over 20 gives a BUY signal.

MFI crossing down the 80 mark gives a SELL signal.

Stop loss should be used as a precautionary measure.
Trailing stop loss can be used to let the profits ride, while ensuring safety in case of trend reversals.


Comments and feedback would push me to come out with better analyses. Thank you!


MFI crossed below 80 but price goes up. SL hit.
+3 Reply
you are showing something that maybe its bad for people.. overbought but is going up and up.
+2 Reply
@CoinPlusTrader this guy should have taught how newbies what are regular and hidden divergence, if the money flow index is opposing against the price action in "projecting" bullish /bearish trends. This tutorial is basically misleading.
+1 Reply
CoinPlusTrader FarhatBmdhj
civilKitten60243 FarhatBmdhj
@FarhatBmdhj, would keep this in mind. thanks for pointing out
FarhatBmdhj civilKitten60243
@civilKitten60243, hey no worries man. i started as a newbie too. just that people are not educated on the divergence part then they make a silly trade and RIP to porfolio. I wish you success in your trading performance.
No I think that is the volume candle spiking higher making it look as though the stop has been hit but it hasn’t, I could be wrong though. lol
+1 Reply
very good 👏👏
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Thank you so much
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Kindly request for Interpretation of the light Green and light red bar please - I do understand what to look for as explained when MFI crosses over 20 gives a buy signal and MFI crosses below 80 mark is a sell signal.
+1 Reply
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